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Outshred Your Competition REPORTER www.URSCHEL.com Vol. 145, No.1 • Friday, June 19, 2020 • Madison, Wisconsin US Dairy Groups Criticize Canada’s Milk Production Fell 1% In May; Output Allocation Of Tariff-Rate Quotas Declined 1.5% In CA, Canadian Dairy Processors Praise Decision To On Monday, the Canadian gov- 3.1% In Wisconsin ernment issued notices to import- Washington—US milk produc- Allocate Majority Of TRQs To Processors ers that set out the policies and tion in the 24 reporting states practices pertaining to the admin- during May totaled 17.96 billion Arlington, VA, and Ottawa, Whey powder is the exception, istration of Canada’s TRQs under pounds, down 1 percent from May the report said: its TRQ would rise Ontario—Two US dairy organi- the CUSMA. 2019, USDA’s National Agricul- to 4,303 metric tons by year 10, zations this week criticized the There are two TRQs for cheese, tural Statistics Service (NASS) after which it would be eliminated. Canadian government’s alloca- one for cheese for industrial use, reported Thursday. Under the USMCA, which is tion of its dairy tariff-rate quotas which applies to bulk shipments NASS revised its April milk known in Canada as the Canada- (TRQs) under the US-Mexico- for further food processing; the production estimate down by 47 United States-Mexico Agreement Canada Agreement (USMCA). other, cheese of all types, is for any million pounds, so April milk out- (CUSMA), Canada will adminis- Under the USMCA, which will use. put was up 1.3 percent from April ter the agreed-upon dairy TRQs enter force on July 1, 2020, Can- The access quantity for each of 2019, rather than up 1.6 percent as through its import licensing sys- ada will provide new TRQs exclu- those categories is 521,000 kilo- originally estimated. tem for each quota year. Quotas sively for the US for 14 categories grams for the period July 1 to Dec. Production per cow in the 24 will be allocated to eligible appli- of US dairy products, which cover 31, 2020. reporting states averaged 2,031 cants active in Canada’s food and 51 tariff lines as classified in the For the of all types cat- pounds for May, 32 pounds below agriculture sectors. The quota year Harmonized Tariff System (HTS), egory, 85 percent is allocated to May 2019. for milk, cream, skim milk powder, according to a recent report from processors on a market share basis The number of milk cows on butter, milk powder, and whey is the Congressional Research Ser- based on the kilograms of cheeses farms in the 24 reporting states was Aug. 1 to July 31. The other dairy vice (CRS). of all types manufactured by the 8.84 million head, 50,000 head products are to be administered on The TRQ amounts would be processor during the reference more than May 2019 but 12,000 a calendar year basis. established for year one and dou- period, and 15 percent is allocated head less than April 2020. According to the US Dairy bled in year two and would then to distributors on an equal share For the entire US, May milk Export Council (USDEC) and the increase by 50 percent, 33 percent, basis. production totaled 18.84 billion National Milk Producers Federa- 25 percent, and 20 percent in years For the industrial cheese tariff- pounds, down 1.1 percent from tion (NMPF), Canada will distrib- three through six, the CRS report rate quota, 80 percent is allocated May 2019. ute the TRQs in such a way as to explained. After year six, the to processors on a market share Production per cow averaged discourage high-value food service quantities of each category would basis based on the kilograms of 2,011 pounds for May, 31 pounds or retail products from entering increase at a compound growth industrial cheeses manufactured for below May 2019. The number of the market. Most of the TRQs are rate of 1 percent for the subsequent use as an ingredient in the output milk cows on farms in the United given to competitors who have no 13 years. After year 19, the quotas States in May was 9.37 million incentive to import products. would be fixed at the year-19 level. • See Canada’s TRQs, p. 11 head, 37,000 head more than May 2019, but 11,000 head less than Less Than 2 Billion Some USDA Food Box Contracts April 2020. NASS noted that its milk pro- Pounds Of Milk Extended For July 1-Aug. 30 Period duction and milk per cow esti- mates include dumped milk. Washington—US Secretary of on their demonstrated abilities Pooled On California California’s May milk produc- Agriculture Sonny Perdue on to perform or at the vendor’s tion totaled 3.5 billion pounds, Order In May; Class Wednesday announced that the request, USDA explained. III Use Was 2.8% US Department of Agriculture These extensions continue • See Less Milk In May, p. 6 (USDA) will extend the con- to require audits to ensure food Folsom, CA—The volume of tracts of select vendors from the safety plans are being followed, Change In Milk Per Cow milk pooled on the California fed- May 2020 vs May 2019 first round of the Farmers to Fam- 100 percent US grown and raised in pounds eral milk marketing order in May ilies Food Box Program. food is being procured and deliv- totaled 1.9 billion pounds, down USDA is exercising this option ered, and food products meet all 25 10 10 about 80 million pounds from to extend contracts for current of USDA’s standards. April, according to the statisti- distributors for the next perfor- USDA said it chose not to 0 cal uniform price announcement mance period, July 1 through extend some vendors’ contracts -25 -15 released late last week by the mar- -20 Aug. 30, for up to $1.16 billion either in part because of con- -25 -25 ket administrator’s office. -50 in food. cerns brought up during audits -45 -50 That marked the second month The decision to extend cur- or for performance challenges. in a row, and the eighth time in -75 rent contractors was determined Also, some contracts were not -75 the last 10 months, that less than 2 based on their performance since extended at the vendors’ request. -100 billion pounds of milk was pooled May 15, which is when the In addition, USDA said it will on the California federal order. delivery period for the current begin new contracts with a few -125 The statistical uniform price for contract period started. Some vendors whose offers were not -150 the California order in May was vendors were extended without previously accepted due to tech- $11.95 per hundredweight, down any adjustment to their delivery nical errors in their proposals. -175 99 cents from April. Minimum amounts, while others’ amounts -185 -200 • See CA Federal Order, p. 8 or locations were adjusted based • See Food Box Contracts, p. 10 CA WI ID NY TX MI PA MN NM SD Page 2 CHEESE REPORTER June 19, 2020

Past Issues Read this week’s issue EDITORIAL COMMENT or past issues of The controversy over this pro- Cheese Reporter on your mobile phone or gram started after USDA, on tablet by scanning this May 8, approved $1.2 billion in QR code. DICK GROVES contracts under the Farmers to Cheese Reporter Publishing Co. Inc. ©2020 Families Food Box Program. Con- 2810 Crossroads Drive, Suite 3000 tracts were awarded to somewhere Publisher / Editor Madison, WI 53718-7972 around 200 companies located Cheese Reporter (608) 246-8430 • Fax (608) 246-8431 around the US. http://www.cheesereporter.com e: [email protected] DICK GROVES tw: @cheesereporter Publisher/Editor e-mail: [email protected] 608-316-3791 MOIRA CROWLEY Auditors, Investigators Likely To Be Busy For Foreseeable Future Specialty Cheese Editor While the ongoing coronavirus This promises to be a program prioritize agricultural and energy e-mail: [email protected] 608-316-3793 pandemic continues to reshape with ample opportunities for gov- markets, which have witnessed sig- ernment oversight, since just the nificant volatility in the wake of KEVIN THOME pretty much every industry on the Advertising & Marketing Director planet (and generally not for the awarding of initial contracts gen- the coronavirus pandemic.” e-mail: [email protected] better), there’s at least one industry erated some questions. The initial That’s certainly not news to the 608-316-3792 that appears to have a very bright contract period runs through the dairy industry which, as noted in BETTY MERKES future, at least for the next year or end of this month, and USDA has this space just last week, has expe- Classifieds/Circulation Manager e-mail: [email protected] two: the auditing and investigating elected to extend the period of rienced unprecedented cheese 608-316-3790 industry. some contracts, depending on pro- price volatility over the past three

REGULAR CONTRIBUTORS: This isn’t really an “industry” gram success and available remain- months, with the CME cash mar- Jen Pino-Gallagher, Bob Cropp, Brandis as such, but those involved in ing funds, up to $3 billion. ket price for 40-pound Cheddar Wasvick, Dan Strongin, John Umhoefer auditing government spending Less than two weeks after blocks varying from a low of $1.00 You can e-mail our contributors at: announcing contracts under per pound back in mid-April to a [email protected] and investigating industry behav- ior during the pandemic will be the Food Box Program, USDA record high of $2.5850 per pound The Cheese Reporter is the official mighty busy trying to figure out if announced details of the Coro- last week. publication of the following associations: everything has been operating as it navirus Food Assistance Program, That CFTC meeting was held California Cheese & Butter Association is supposed to operate. which is providing up to $16 bil- on May 28th, the day after the Lisa Waters, For starters, there’s USDA’s lion in direct payments to dairy block market first topped $2.00 a 1011 Pebble Beach Dr, Clayton, CA 94517 new, and controversial, Farmers to and other farmers. pound. Central Wisconsin Cheesemakers’ and Families Food Box Program. This Three weeks after that Given this cheese price volatil- Buttermakers’ Association Jim Mildbrand program has a pretty short history, announcement, the chairman of ity, is a CFTC investigation war- [email protected] having just been announced by the House Ag Committee, along ranted? Cheese Importers Association of America US Secretary of Agriculture Sonny with three subcommittee chairs, Maybe, or maybe not. But some 204 E St. NE, Washington, DC 20002 Perdue back on Apr. 17 as part of wrote to Perdue expressing con- historical perspective might be Eastern Wisconsin Cheesemakers’ and the Coronavirus Food Assistance cerns over the implementation of helpful. Buttermakers’ Association Program. Under the food box pro- the CFAP. Back in early 1992, the Univer- Barb Henning, Henning’s Cheese 21812 Ucker Road, Kiel, WI 53042 gram, USDA is partnering with Needless to say, these new sity of Wisconsin-Madison and the International Dairy-Deli-Bakery Association regional and local distributors to USDA programs are raising some Wisconsin Department of Agricul- 8317 Elderberry Road, Madison, WI 53717 purchase and distribute up to $3 interesting questions and concerns. ture, Trade and Consumer Protec- tion agreed to collaborate on an Missouri Butter & Cheese Institute billion in dairy and other products. Related to that point, USDA’s Terry S. Long, 19107 Factory Creek Road, The controversy over this pro- Office of Inspector General (OIG) analysis of cheese pricing and the Jamestown, MO 65046 gram started after USDA, on May noted back in April that, as part of National Cheese Exchange. That Nebraska Cheese Association 8, approved $1.2 billion in con- the Coronavirus Aid, Relief, and study, which was released in March Ed Price, Fremont, NE 68025 tracts under the Farmers to Families Economic Security (CARES) Act, of 1996, examined the overall New York State Cheese Manufacturer’s Assn Food Box Program. Contracts were the OIG received $750,000 to pro- trading activity on the NCE from Kathyrn Boor, 11 Stocking Hall, awarded to somewhere around 200 vide oversight of USDA funding 1974 to 1993 and also included a Cornell University, Ithaca, NY 14853 companies located around the US. received in the CARES Act. detailed analysis of the trading of North Central Cheese Industries Assn Two weeks after USDA That funding will be used to leading sellers and leading buyers Lloyd Metzger, SDSU, Box 2104, Brookings, SD 57007 announced approved suppliers for provide oversight of the more than during 1988-1993. North Dakota Cheese Makers’ Assn the program, three chairs of House $35.8 billion provided to USDA During that 1988-93 period, the Chuck Knetter, Medina, ND 58467 Ag Committee subcommittees for- for relief efforts through the NCE block price ranged from a Ohio Swiss Cheese Association mally requested information from CARES Act as well as the Families low of $1.0850 per pound in Octo- Lois Miller, P.O. Box 445, Perdue on the Food Box Program. First Coronavirus Response Act. ber of 1991 to a high of $1.5450 Sugar Creek, OH 44681 In their letter (as reported on the As noted above, the OIG outlined a pound in late 1989. Seems like South Dakota State Dairy Association front page of our May 29th issue), its plans back in April, before pretty minor volatility these days. Howard Bonnemann, SDSU, Box 2104, Brookings, SD 57007 the chairs expressed concerns that USDA awarded contracts under The coronavirus pandemic “contracts were awarded to enti- the Food Box Program and before has brought about tremendous Southwestern Makers’ Association ties with little to no experience the agency announced details of upheaval, and along with that Myron Olson, Chalet Cheese Coop, in agriculture or food distribution producer payments under CFAP. upheaval has come new legisla- N4858 Cty Hwy N, Monroe, WI 53566 and with little capacity to meet the Meanwhile, at an open meeting tion, new programs, trillions of Wisconsin Association for Food Protection obligations of their award.” of the Commodity Futures Trad- dollars of new government spend- Bob Wills Their letter to Perdue requested ing Commission late last month, ing, unprecedented price volatility PO Box 620705, Middleton WI 53562 and much more. It will, or at least Wisconsin Cheese Makers’ Association “thorough responses” to several Heath P. Tarbert, CFTC chairman, John Umhoefer, 5117 W. Terrace Dr., questions regarding the Food Box noted that, regarding the CFTC’s should, also bring about unprec- Suite 402, Madison, WI 53718 Program, including how USDA further response to the corona- edented oversight of how that Wisconsin Dairy Products Association will ensure awardees are fulfilling virus pandemic, “the agency has money is spent, and how markets Brad Legreid, 8383 Greenway Blvd., the obligations of their contracts. continued to monitor closely and have reacted to the pandemic. Middleton, WI 53562

CHEESE REPORTER (Publication Number: ISSN 0009-2142). Published weekly by Cheese Reporter Publishing Co. Inc., 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972; Phone: (608) 246-8430; Fax: (608) 246-8431. Subscriptions: $140.00 per year in USA; Canada and Mexico: $195.00 per year; other foreign subscribers, please write for rates. Advertising and Editorial material are copyrighted material. Any use without publisher’s consent is prohibited. Cheese Reporter does not endorse the products of any advertiser or any editorial material. POSTMASTER: If undeliverable, Form 3579 requested. Periodicals postage paid at Madison, WI. Address all correspondence to: Cheese Reporter, 2810 Crossroads Drive, Suite 3000, Madison, WI 53718-7972 June 19, 2020 CHEESE REPORTER Page 3

3-A SSI showed that counterfeit China trademark authorities USITC Order Prohibits Unlicensed Entry products were advertised and sold issued registration certificates in Of Some Food Equipment From China from multiple large online retailers six classes of equipment which and other specific websites directly encompass the types of processing Washington—The US Interna- bond should be imposed on the full to consumers and distributors. equipment covered by 3-A Sani- tional Trade Commission (USITC) value of the infringing items. “This GEO provides tools avail- tary Standards and eligible for 3-A this week issued a general exclu- The USITC’s order was deliv- able for the first time in the his- Symbol authorization. The China sion order (GEO) prohibiting the ered to President Trump and to US tory of 3-A SSI to stop the imports registrations provide immediate unlicensed entry of certain food Trade Representative Robert Ligh- of these counterfeit products from legal recourse by 3-A Symbol hold- processing eqipment and packag- thizer and then terminated. China,” said Timothy Rugh, 3-A ers in China against counterfeits. ing materials from China that are “Issuance of the GEO begins SSI’s executive director. US regulatory sanitarians, falsely advertised through the unli- a new era for the US industry to Earlier this year, 3-A SSI including USDA, FDA and state censed use of the 3-A Symbol or finally block these Chinese com- announced the legal registration authorities, rely on the 3-A Symbol “3A” claim. panies that make false claims and of the 3-A Symbol and other program to support the inspections The USITC initiated this market counterfeit products,” marks in China. Registration of of equipment and processing sys- investigation a year ago based on according to Bart S. Fisher, inter- the trademarks by the National tems around the US and other pro- a complaint filed by 3-A Sanitary national trade counsel for 3-A SSI. Intellectual Property Administra- cessing facilities of foods imported Standards, Inc. (3-A SSI). 3-A SSI said it documented the tion of the People’s Republic of into the US. The 3-A Symbol is a The complaint, as supple- proliferation of counterfeit prod- China provides 3-A SSI licensees registered mark used since 1956 to mented, alleged violations of sec- ucts dating back to 2016 when in China essential new protection identify equipment that meets 3-A tion 337 of the Tariff Act of 1930, more than two dozen Chinese com- against counterfeits and enhances Sanitary Standards for design and based upon the importation or sale panies were found marketing unli- broader international protection of fabrication. For more information, of certain food processing equip- censed products. In its complaint, the 3-A SSI marks, 3-A SSI said. visit www.3-a.org. ment and packaging materials thereof by reason of false adver- tising and unfair competition, the threat or effect of which is to destroy or substantially injure an industry in the US. The notice of investigation named as respondents Wen- STAY AHEAD OF THE zhou QiMing Stainless Co., Ltd. of Wenzhou, China; High MPa Valve Manufacturing Co., Ltd. of GROWING DEMAND Wenzhou, China; Wenzhou Sinco Steel Co, Ltd. of Wenzhou, China; Wenzhou Kasin Valve Pipe Fitting FOR PROTEIN Co., Ltd. of Wenzhou, China; and Wenzhou Fuchuang Machinery. The USITC found that the statutory requirements for relief under section 337 are met, and also found that the public inter- est factors enumerated in section 337 do not preclude issuance of the statutory relief. The USITC has determined that the appropriate remedy in this investigation is a GEO prohibit- ing the unlicensed entry of certain food processing equipment and packaging materials thereof that are falsely advertised through the unlicensed use of one or more of the certification marks of US Trade- mark Registration No. 1,976,117, US Trademark Registration No. 5,189,919, or US Trademark Reg- istration No. 5,554,628. All three of those trademarks are owned by 3-A SSI. Also, the USITC determined that the bond during the period of presidential review will be in the amount of 100 percent of the entered value of the imported arti- cles that are subject to the GEO. 3-A SSI noted that the GEO is based on initial determinations made by Administrative Law Judge David P. Shaw in February 2020 that the unlicensed use of the 3-A Symbol by certain Chinese compa- nies “has substantially injured 3-A SSI’s domestic industry by harming the goodwill associated with the 3-A Certification Marks.” The full Commission agreed that a sweep- ing GEO was justified over a more limited action, the public interest was served by such action, and a For more information, visit www.tetrapakfiltration.com Page 4 CHEESE REPORTER June 19, 2020

Record Milk Price Volatility In 2020 by Dr. Bob Cropp from our Dairy Situation & Outlook: June 18, 2020

Milk prices have been volatile, plans to their producers to reduce January, got as low as $1.00 in April archives but it looks like volatility will be milk production. and as high as $2.425 in June and a record in 2020. In January, the So, all these activities tight- is now $2.28. The price of whey 50 YEARS AGO Class III price was $17.05. By May ened the supply-demand situation also impacts the Class III price but June 19, 1970: Stitzer, WI— it had fallen to $12.14. But it looks and milk prices responded. This has not shown any real strength in Glenn Pound, dean of the UW- like June will be above $20. Class shows we can have big changes in May or June. Madison CALS, strongly advised IV has also been volatile with Jan- milk prices from relatively small The Class IV price is driven by dairy farmers to vote in favor of uary at $16.65 falling to $10.67 in changes in supply and demand. the price of butter and nonfat dry the upcoming referendum on a May and will be about $13.35 in USDA’s milk production report milk. Butter was as high as $1.90 state dairy promotion program. June. showed dairy farmers did reduce per pound in January, got as low If you don’t put money into your What factors drove these big milk production. as $1.10 per pound in April and as own future, the state of Wiscon- changes in milk prices? The Milk cow numbers declined by high as $2.015 in June and is now sin isn’t going to have adequate sharp drop in prices in May was 11,000 head from April to May $1.8075. Nonfat dry milk was as tax dollars to do the promotion the result of the COVID-19 virus and by 15,000 head March to May. high as $1.24 per pound in January, job for you, Pound said. shutting down schools, universi- May cow numbers were still 0.4 got as low as $0.80 in April and ties, restaurants, and food service percent higher than a year ago but was as high as $1.05 in June and is Washington—The FDA, citing which caused a big drop in the milk per cow was 1.5 percent lower now $1.02. complaints by foreign embassies sales of milk, cheese, and butter. resulting in May milk production The big question is how long and domestic concerns, proposed Milk production was also at a rela- being 1.1 percent lower than a year can these milk prices hold? A big regulations declaring foods mis- ago. tively high level with March pro- part of the answer is milk produc- branded if deceptive statements duction 2.8 percent higher than The two leading dairy states tion. Hopefully, dairy farmers do or vignettes as to country, state the year before resulting in more California and Wisconsin had not respond to higher milk prices or territory of origin appeal on milk than milk plants could handle lower milk production of 1.5 per- by increasing production again. labels. For example, the proposal with the loss of sales. Dairy farmers cent and 3.1 percent respectively. We are entering the seasonal low would prohibit labeling choco- were asked to lower milk produc- Both had reduced cow numbers in milk production during July late as “Swiss chocolate” when tion and some were asked to dump with California down 4,000 head through September. So, milk milk. and Wisconsin 12,000 head. production will be declining and made in the US. But then in May and continu- May milk production was lower hopefully stay below year ago levels ing in June sales of milk, cheese, than a year ago by 3.7 percent in over the next few month. 25 YEARS AGO and butter while not back the lev- New York and Pennsylvania, 1.9 The question is, will schools and June 16, 1995: San Francisco, els prior to COVID-19 started to percent in Minnesota, 2.0 percent universities reopen? It looks like CA—The CMAB will launch improve. in Iowa, 0.4 percent in Michigan some will and some may stay with a new $8 million advertising Restaurants are slowly reopen- and 7.2 percent in New Mexico. online instruction. campaign later this month that’s ing, and food service sales are But milk production was up by Will restaurants be allowed to designed to draw statewide atten- increasing. Restaurants and food 4.8 percent in Idaho, 4.6 percent open to a larger capacity and will tion to the quality cheese prod- service needed to place rather by Oregon, 2.1 percent in Kansas consumers be willing to go to res- ucts of California cheese makers big orders of cheese and butter to and 9.7 percent in South Dakota. taurants? who display the “Real California restock their supplies. South Dakota had added 11,000 USDA has announced it will Cheese” seal. With people staying at home cows. extend purchases of dairy products retail sales of milk, cheese and The Class III price is driven by under the Food Box Program in South Burlington, VT—US butter increased. By May 15th and the cheese price. On the CME July and August which would be Senate Majority Leader Bob into June the Farmers to Families 40-pound block Cheddar was as positive for milk prices. This fall Dole has promised to allow a Food Box Program kicked in and high as $2.0225 per pound in Janu- cheese and butter plants will build vote in the Senate on a proposed the government bought rather ary, got as low as $1.00 in April stocks to meet the seasonal increase interstate dairy compact for New large quantities of milk and cheese. and as high as $2.585 in June and in demand for the holidays. England. But Dole said this week And on the supply side dairy coop- is now $2.50. Cheddar barrels were Will there be a second surge in it’s likely the controversial com- eratives implemented base excess as high as $1.6425 per pound in COVID-19? pact will be subject to a filibuster So, there is a lot of uncertainty from dairy state senators in other as to milk prices for the remain- regions of the US. Business Brokerage • M&A • Commercial Real Estate Experts since 1979 der of the year. But prices should remain rather strong for the next two or three months at least. 10 YEARS AGO Beyond that there is more uncer- June 18, 2010: Island of Jer- tainty. sey—A Jersey Blue entry made by Dairy futures currently are Swiss cheese maker Willi Schmid rather optimistic. Class III futures earned the title of World’s Best is $20 in July, $18’s in August, high Jersey Cheese here this week at Specialists in the $17’s in September before trailing the second World Jersey Cheese off to the $16’s by November and Awards. This year’s contest drew Dairy and Cheese December. 102 entries from 10 countries. Industry Bob Wolter Artisan Dairy Specialist Dairy producers should consider Business Transaction Specialist taking advantage of these prices The US filed Structuring and closing successful deals in the dairy Phone 312.576.1881 Kansas City, MO— and cheese industry is a proven niche for Creative [email protected] with risk management tools such a False Claims Act suit against Business Services. www.cbs-global.com as the Dairy Revenue Protection several feed dealers in US Dis- We respect the hard work you’ve invested in your Program, Class III futures and past, work tirelessly to understand and value what trict Court here this week, alleg- sets you apart, and position you perfectly for your options, forward contracting some ing that the defendants violated unique chosen future. of their milk with a milk buyer the False Claims Act by being Maintaining a long list of qualifi ed buyers who are because there is a greater probabil- 319 N. Broadway, Green Bay, WI 54303 involved in the improper export actively looking to purchase, we welcome the Phone 920.432.1166 • Toll free 800.366.5169 ity that milk prices could fall from chance to prove the advantage we deliver to you. of USDA-owned nonfat dry milk these current futures prices than Every step of the way, we deliver professional, effi cient that was earmarked for livestock service that is proven to result in a successful outcome. increase. producers in designated states. The comments expressed here by The claims are in connection Let’s do this together. Dr. Bob Cropp do not necessarily reflect those of Cheese Reporter Pub- with 2002 and 2003 USDA For more information, visit www.cbs-global.com lishing Co. Inc. NDM drought relief programs. June 19, 2020 CHEESE REPORTER Page 5

right product mix to meet new lev- Pennsylvania Global Dairy Outlook Not As Dire As At els of retail demand, while divert- Height Of Coronavirus Crisis: Report ing milk that would have gone to Makes $40 Million foodservice into longer shelf-life Available To Utrecht, Netherlands—The uting to high stock levels in the products like cheese for aging, global dairy outlook now is “not second half of 2020. powder for storage, and butter. Support State’s nearly as dire” as it was at the Heavy inventories and reduced These inventories will remain ele- height of the coronavirus crisis, demand growth will weigh on vated and will weigh on markets. Dairy Industry And according to RaboResearch’s Q2 global milk prices through 2020 Recession and changing con- Global Dairy Quarterly report. and into 2021, the report said. In sumer patterns. High unemploy- Food Security Government intervention much of the world, dry weather ment rates and slower economic Harrisburg, PA—Pennsylva- through dairy product purchases, is also impacting feed availability nia Gov. Tom Wolf on Tuesday direct payments, and storage aid, and cost, which is pressuring mar- growth will put a damper on dairy announced the availability of combined with the reopening of gins on dairy farms. Still, Rabo- demand lasting into 2021. $40 million in funding through many foodservice outlets, has bank expects a slight increase in Shift in global trade. Exchange the federal Coronavirus Aid, helped jump-start demand. production year-on-year across rates and weaker import demand Relief, and Economic Security “We are on a path toward the major milk-producing regions will be headwinds for milk-export- (CARES) Act to support Penn- recovery, but we are not out of through the first half of 2021. ing regions. Demand from South- sylvania’s dairy industry and the woods,” the report continued. Rabobank’s report listed seven east Asia has been critical to the food security programs. “With the rapid rebound in cheese factors to watch in the third and growth in dairy trade in recent Specifically, $15 million prices in the US, and similar but fourth quarters of 2020: years and will be closely watched will provide an opportunity for less extreme increases elsewhere, Dairy is back by popular for signs of slowing. dairy farmers to receive direct it may be tempting to assume we demand. The pandemic has reju- Potential of a resurgence. relief payments and $5 million have recovered and not look back.” venated the dairy category as While Rabobank’s outlook is based will reimburse dairy farmers But, even if markets have moved consumers returned to a trusted, on the assumption that there will who participate in the Penn- back toward, or in some cases nutritious product. be no major resurgence in corona- sylvania Agricultural Surplus above pre-crisis levels, “it does not Back to basics. Consumers are virus cases, the possibility cannot System (PASS) program by mean that our expectation for the opting for simple, familiar, staple be ruled out and adds to the broad donating excess dairy products future should be the same as it was dairy products amid the pandemic. uncertainty about the future. to the state’s charitable food pre-Covid-19,” the report said. Some of the premium, differenti- Election year in the US. The system. Before the events, it would have ated products that gained strength US is in an election year, with the Any dairy farm that expe- been impossible for much of the in recent years could face struggles potential for larger-than-normal rienced financial losses due developed world to imagine shut- in a slower economy. stimulus and aid packages. Addi- to discarded or displaced milk ting down all but essential services Disrupted demand will leave tional US food aid purchases during the coronavirus emer- for multiple months, the report heavy inventories to work appear to be on the horizon, add- gency disaster may apply for said. Now that it has happened, through. During the lockdowns, ing an additional wild card to mar- assistance. Each farm with a the ante has been upped on what processors scrambled to find the ket forecasts. documented loss will receive “uncertainty” means. a minimum of $1,500 and an Over the past three months, the additional prorated share of the attention has been on understand- How fit is your cheesemaking equipment? remaining funds, not to exceeed ing and dealing with the imme- the actual amount assessed by diate disruptions of wild shifts in the handler. consumer behavior and logistical The deadline to apply for challenges, the report noted. The Proven to produce higher yields the Dairy Indemnity Program is focus now shifts to the longer- and higher consistency Sept. 30, 2020. term implications of a widespread |with higher profits. Also, $15 million will go to recession and beginning to think the State Food Purchase Pro- about a path forward into this era gram, which provides cash of heightened uncertainty. Three results that matter. grants to counties for the pur- The balance between foodser- chase and distribution of food vice sales and retail sales has been to low-income individuals, and one of the most defining features $5 million will go to the PASS of this crisis, the report said. As program to reimburse the agri- lockdowns and mandatory food cultural industry for the costs service closures begin to be lifted involved in harvesting, process- in much of the world, some limi- ing, packaging and transporting tations remain. Food service sales food that they donate to the will take time to return to normal charitable food system. due to remaining capacity restric- “Pennsylvania’s agricultural tions and cautious consumers. industry represents the very best Retail sales will eventually For two decades, APT has been delivering leading of who we are – something that’s return to a normal trend over time, edge solutions and high quality equipment been seen since the very begin- the report continued. The extent preferred by more Cheesmakers in the dairy industry. ning of our COVID-19 mitiga- of the lockdown may have been tion efforts,” Pennsylvania Gov. long enough to form new habits, Wolf said. “That’s why it’s criti- and some segments of consumers cal that we open these programs may continue preparing more food to support Pennsylvania’s farm- at home on an ongoing basis. ers today. This CARES funding Much of the world will emerge is going to an industry that gives from the pandemic lockdowns into back every day to ensure that economic recession, the report Pennsylvanians have access to pointed out. Growth will weigh on fresh food. domestic demand as well as curb The PASS program helps to import demand in many regions. support Pennsylvania’s agricul- Southeast Asia has been a force ADVANCED PROCESS TECHNOLOGIES, INC. ture industry in all 67 counties in driving import demand opportu- Engineering | Fabrication | Controls | Installation and reduce waste of agricultural nities for exports from many milk- surplus by making connections producing areas. With an expected between production agriculture demand reduction coming, and www.APT-INC.com | An Employee Owned Company and the non-profit sector. lower Chinese import needs, there could be a surplus of milk, contrib- For more information, visit www.APT-Inc.com Page 6 CHEESE REPORTER June 19, 2020

Less Milk In May lion pounds, so production was up Total US Milk Production Milk Production by State (Continued from p. 1) 1 percent from April 2019, rather 2020 vs. 2019 than up 1.5 percent as initially (in millions of pounds) 19,500 STATE May May % Change down 1.5 percent from May 2019, estimated. 2019 2020 Change Cows due to 4,000 fewer milk cows and Milk production in Texas during 19,300 25 less pounds of milk per cow. May totaled 1.221 billion pounds, 19,100 California 3556 3504 -1.5 -4000 California’s April milk output had up 1.9 percent from May 2019, due 18,900 Wisconsin 2659 2577 -3.1 -12000 been up 0.3 percent from April to 25,000 more milk cows but 50 18,700 Idaho 1345 1410 4.8 27000 2019. less pounds of milk per cow. Texas’s 18,500 Wisconsin’s May milk produc- April milk output had been up 4.9 New York 1328 1274 -3.7 -1000 tion totaled 2.577 billion pounds, percent from a year earlier. 18,300 Texas 1198 1221 1.9 25000 down 3.1 percent from May 2019, Michigan’s May milk production 18,100 due to 12,000 fewer milk cows and totaled 995 million pounds, down 17,900 Michigan 999 995 -0.4 3000 45 less pounds of milk per cow. 0.4 percent from May 2019, due to 17,700 Pennsylvania 892 865 -3.0 -10000 Wisconsin’s April milk produc- 3,000 more milk cows but 25 less 17,500 Minnesota 862 846 -1.9 -5000 tion estimate was revised down by pounds of milk per cow. Michigan’s 17,300 19 million pounds, so output was April milk output had been up 1.6 New Mexico 718 666 -7.2 4000 17,100 down 0.7 percent from April 2019, percent from April 2016. Washington 588 585 -0.5 1000 rather than up slightly as initially Pennsylvania’s May milk pro- 16,900 estimated. duction totaled 865 million 16,700 Ohio 474 476 0.4 5000 J F M A M J J A S O N D May milk production in Idaho pounds, down 3 percent from May Iowa 460 451 -2.0 -2000 totaled 1.41 billion pounds, up 2019, due to 10,000 fewer milk 4.8 percent from May 2019, due cows and 20 less pounds of milk New Mexico’s May milk produc- Colorado 411 430 4.6 9000 to 27,000 more milk cows and 10 per cow. tion totaled 666 million pounds. Arizona 414 420 1.4 2000 Production declined 7.2 percent more pounds of milk per cow. Pennsylvania’s April milk pro- Indiana 363 357 -1.7 -3000 Idaho’s April production esti- duction had been up 1.6 percent from May 2019, due to 4,000 more mate was revised down by 7 mil- from a year earlier. milk cows but 185 less pounds of Kansas 327 335 2.4 7000 milk per cow. lion pounds, so output was up 5.7 May milk production in Min- South Dakota 236 259 9.7 11000 percent from April 2019, rather nesota totaled 846 million pounds, New Mexico’s April milk pro- Oregon 224 224 - 2000 than up 6.3 percent as originally down 1.9 percent from May 2019, duction had been down 0.3 per- estimated. due to 5,000 fewer milk cows and cent from April 2019. Vermont 234 219 -6.4 -3000 Washington’s May milk produc- New York’s May milk produc- 15 less pounds of milk per cow. Florida 213 213 - NC tion totaled 1.274 billion pounds, Minnesota’s April milk produc- tion totaled 585 million pounds, down 3.7 percent from May 2019, tion estimate was revised down by down 0.5 percent from May 2019, Utah 197 191 -3.0 -2000 due to 1,000 more milk cows but due to 1,000 fewer milk cows and 2 million pounds, so output was Illinois 156 153 -1.9 -2000 20 less pounds of milk per cow. 75 less pounds of milk per cow. up 0.1 percent from April 2019, Georgia 155 152 -1.9 -1000 New York’s April milk output esti- rather than up 0.4 percent as origi- Washington’s April milk pro- mate was revised down by 6 mil- nally estimated. duction estimate was revised down Virginia 133 133 - -1000 by 3 million pounds, so output was up 0.7 percent from April 2019, millions of pounds 1,000 head rather than up 1.2 percent as ini- tially estimated. 7.2 percent in New Mexico; and All told for the 24 reporting unchanged in Florida, Oregon and states in May, compared to May Virginia. 2019, milk production was higher By comparison, for the 24 report- in seven states, with those pro- ing states in April, compared to duction increases ranging from April 2019, using the revised pro- 0.4 percent in Ohio to 9.7 per- duction figures from NASS, milk cent in South Dakota; lower in 14 production was higher in 17 states, states, with those declines ranging lower in six states and unchanged from 0.4 percent in Michigan to in Arizona.

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ton, up 3.1 percent; Contract 3, Contract 2, $3,645 per ton, down Global Dairy Trade Price Index Rises $3,530 per ton, down 1.3 percent; 0.8 percent; Contract 3, $3,595 1.9%; Butter Posts Only Price Decline Contract 4, $3,621 per ton, up per ton, down 0.6 percent; Con- 10.4 percent; Contract 5, $3,685 tract 4, $3,537 per ton, down 2.1 Auckland, New Zealand—The ric ton ($1.65 per pound), up 1.4 per ton, down 4.5 percent; and percent; Contract 5, $3,545 per price index on this week’s semi- percent. Average winning prices Contract 6, $3,611 per ton, up 1.6 ton, down 2.1 percent; and Con- monthly Global Dairy Trade were: Contract 1 (July), $4,009 per percent. tract 6, $3,735 per ton, up 0.8 (GDT) dairy commodity auction ton, down 7.5 percent; Contract 2 Whole milk powder: The aver- percent. increased 1.9 percent from the pre- (August), $4,029 per ton, up 3.1 age winning price was $2,829 per Anhydrous milkfat: The aver- vious auction, held two weeks ago. percent; Contract 3 (September), ton ($1.28 per pound), up 2.2 age winning price was $3,993 per That marked the third straight $3,530 per ton, down 1.3 percent; percent. Average winning prices ton ($1.81 per pound) up 0.8 per- increase in the GDT price index. Contract 4 (October), $3,621 per were: Contract 1, $2,699 per ton, cent. Average winning prices were: During the first half of 2020, there ton, up 10.4 percent; Contract up 3.8 percent; Contract 2, $2,636 Contract 1, $3,949 per ton, up 1.1 were six increases and six decreases 5 (November), $3,685 per ton, per ton, up 3.2 percent; Contract percent; Contract 2, $3,976 per in the GDT price index. down 4.5 percent; and Contract 3, $2,629 per ton, up 2.9 percent; ton, up 0.1 percent; Contract 3, In this week’s GDT auction, 6 (December), $3,611 per ton, up Contract 4, $2,565 per ton, up 3 $3,965 per ton, down 0.2 percent; which featured 166 participating 1.6 percent. percent; and Contract 5, $2,572 Contract 4, $3,997 per ton, up 1.1 bidders and 104 winning bidders, Skim milk powder: The aver- per ton, up 3.2 percent. percent; and Contract 5, $4,096 prices were higher for Cheddar age winning price was $2,609 per Butter: The average winning per ton, up 3.8 percent. cheese, skim milk powder, whole ton ($1.18 per pound), up 3.1 per- price was $3,597 per ton ($1.63 Lactose: The average winning milk powder, anhydrous milkfat cent. Average winning prices were: per pound), down 1 percent. Aver- price was $1,290 per ton (58.5 and lactose; and lower for butter. Contract 1, $4,009 per ton, down age winning prices were: Contract cents per pound), up 0.4 percent. Buttermilk powder wasn’t offered 7.5 percent; Contract 2, $4,029 per 1, $3,670 per ton, up 1.9 percent; That was for Contract 2. on this week’s auction, and an average price for sweet whey pow- der wasn’t available. Results from this week’s GDT auction, with comparisons to the auction held two weeks ago, were as follows: Cheddar cheese: The average winning price was $3,631 per met-

Dairy.com Acquires Ireland’s Orbis MES Frisco, TX—Dairy.com this week announced the acquisition of Orbis MES a Dublin, Ireland-based leader in manufacturing execution systems (MES) for the food and beverage industry. We look at cheese differently. Orbis MES has been an MES provider to the food and bever- age industry since 1998. The company’s long-standing partner- ships with European dairy clients include Glanbia, Dairygold, and Arrabawn. In the US, Glanbia, Southwest Cheese, Dairy Farmers of America and Dean Dairy use Orbis to opti- mize plant operations, according to Dairy.com “The Orbis MES applica- tion suite provides dairy, food, and beverage plants the abil- ity to manage operations in real-time, from anywhere,” said Scott Sexton, Dairy.com’s CEO. “It is exceptional software that tracks a liquid product’s compli- At Deville Technologies we do more than We deliver ultra hygienic food cutting cated journey from plant intake to finished products. Companies just provide cheese processing companies solutions that operate effectively and can prevent product loss, evaluate with the perfect shred, dice, shave and grate... efficiently. We partner with our clients to operating performance, improve we keep the whole solution in mind. custom design the solution that best meets their quality, trace product flows, and food cutting needs...because we don’t just see cheese, monitor utilities consumption.” we see the whole picture. “Joining the Dairy.com family allows us to expand our services and offerings to provide more value to our clients,” said John Tobin,

Orbis MES founder and CEO. FS40 line with powder dispenser, tumble drum and conveyor Tobin will continue to lead the Orbis MES team from Dublin and Come see us at: will join the Dairy.com executive April 14-16, 2020 Milwaukee, WI – Booth 833 1.866.404.4545 www.devilletechnologies.com leadership team. For more information, visit dairy.com. For more information, visit www.devilletechnologies.com Ad – Cheese Reporter-REV.indd 1 2020-02-26 4:09 PM Page 8 CHEESE REPORTER June 19, 2020

CA Federal Order In April, the California order pounds from May 2019. May’s (Continued from p. 1) had been the only federal order Class III utilization percentage was Longtime Industry with a negative PPD. 83.9 percent, up from April’s 82.9 Leader Nico van class prices for May were as fol- The Pacific Northwest order’s percent but down from May 2019’s lows: Class I, $15.05 per hundred; statistical uniform price for May 85.9 percent. Zwanenberg Dies was $11.97 per hundredweight. On the Northeast federal order Class II, $12.30; Class III, $12.14; Cuba, NY—Nico van Zwanen- The volume of milk pooled on the in May, the PPD was a positive and Class IV, $10.67. The producer berg, 93, a native of the Nether- order totaled 641.8 million pounds, $1.33 per hundredweight and the price differential (PPD) was a neg- lands and longtime leader in the up more than 20 million pounds statistical uniform price was $13.47 ative 19 cents per hundredweight. state and national cheese and from April but down 145.2 million per hundred. A total of 2.31 billion The volume of milk pooled in dairy industries, died June 7. He pounds from May 2019. pounds of milk was pooled on the Class III on the California order in was 92 years old. The volume of milk pooled in Northeast order in May, down less May totaled 53.4 million pounds, In 1943, Nico’s father, Ise- Class III on the Pacific North- than 1 million pounds from April- the fourth straight month in which dor van west federal order in May totaled and down 45 million pounds from less than 60 million pounds of milk Zwanen- 183.6 million pounds, up more May 2019. has been pooled in Class III. berg, along than 10 million pounds from April The volume of milk pooled in In May, the Class III utilization with Edwin but down more than 137 million Class III on the Northeast order in percentage on the California order Moses, cre- pounds from May 2019. May’s May totaled 625.4 million pounds, was 2.8 percent, the fourth straight ated Cuba Class III utilization percentage was up 70 million pounds from April month it was under 3 percent. Cheese & 28.6 percent, up from April’s 27.8 and up 20 million pounds from A total of 1.33 billion pounds Trading percent but down from May 2019’s May 2019. May’s Class III utiliza- of milk was pooled in Class IV on Company, 40.8 percent. tion percentage was 27.1, up from the California order in May, down Inc. here. On the Upper Midwest federal April’s 24.1 percent and also up about 118 million pounds from Ten years order in May, the PPD was a posi- from May 2019’s 25.7 percent. Nico van Zwanenberg April but still the 11th straight later, Nico tive 17 cents per hundredweight, May’s PPD on the Mideast fed- month in which more than 1 bil- joined the business following and the statistical uniform price eral order was a positive 59 cents lion pounds of milk was pooled in the death of his father. A mod- was $12.31 per hundred. The vol- per hundredweight, and the sta- Class IV. The Class IV utilization ern cheese plant was constructed ume of milk pooled on the order tistical uniform price was $12.73 percentage was 69.8 percent, down in South Cuba in 1956, and in totaled 2.78 billion pounds, up per hundredweight. A total of 1.79 from April’s 72.9 percent. 1975, Nico took over as presi- 75 million pounds from April but billion pounds of milk was pooled dent. Two years later, the com- down 468 million pounds from on the Mideast order in May, up PPDs In Other Orders pany named was changed to In addition to the California fed- May 2019. 38 million pounds from April but Cuba Cheese, Inc. eral order, one other federal order The volume of milk pooled in down 36 million from May 2019. Nico and Moses ran the com- reported a negative PPD for May: Class III on the Upper Midwest In May, the volume of milk pany for 50 years until 1986, the Pacific Northwest, with a PPD order in May totaled 2.33 billion pooled in Class III on the Mideast when Cuba Cheese merged into of negative 17 cents per hundred- pounds, up 92 million pounds order totaled 591.9 million pounds, Empire Cheese, Inc., a wholly- weight. from April but down 457 million up more than 60 million pounds from April but down 39 million owned subsidiary of H.P. Hood. pounds from May 2019. May’s Following the merger, van Class III utilization percentage was Zwanenberg became board chair- 33.1 percent, up from April’s 30.4 man of Empire Cheese, Inc., percent but down from May 2019’s until his retirement in 1988. 34.6 percent. Throughout his long career, The PPD on the Central order van Zwanenberg served as a in May was a positive 10 cents per member of the New York State hundredweight, and the statistical Cheese Manufacturers Asso- uniform price was $12.24 per hun- ciation, director of US Cheese dred. A total of 1.39 billioin pounds Makers Association, and recipi- of milk was pooled on the Central ent of the American Dairy Prod- order in May, down 205 million ucts Institute’s Award of Merit. pounds from April and down 104 He also held memberships million pounds from May 2019. with the National Cheese The volume of milk pooled in Exchange, American Butter Class III on the Central order in Institute, National Cheese Insti- May totaled 548.4 million pounds, tute, Cornell University Cheese down almost 153 million pounds Task Force, amongst others. from April and down 144 mil- lion pounds from May 2019. The PERSONNEL “Flavors” Central order’s Class III utilization percentage in May was 39.4, down KENT McQUAID announced this week plans to retire as presi-   from April’s 43.9 percent and down dent of Laubscher Cheese Com-       from May 2019’s 46.2 percent. pany, Mercer, PA. McQuaid has     In May, the PPD on the South- been with the company for 46    west order was 87 cents per hun- dredweight, and the statistical years, serving as president since       1990. Celebrating 50+ Years uniform price was $13.01 per hun-      dred. The volume of milk pooled GLENN WALLACE has joined     on the order totaled 925.1 million Valley Milk, LLC as interim      pounds, down 238 million pounds CEO, following the departure of        from April and down 343 million president and CEO PATRICIA          pounds from May 2019. SMITH on June 1. Smith came        The volume of milk pooled in         to Valley Milk in April 2016 as Class III on the Southwest order in         the company’s first CEO. Wal- May totaled 45.8 million pounds, lace has over 20 years of dairy down 157 million pounds from Proudly made in the United States industry experience, including April and down almost 450 mil- leadership roles with Camp- lion pounds from May 2019. May’s     bell Soup and Dairy Farmers Class III utilization percentage was      of America (DFA). He most 5 percent, down from 17.4 percent ­€€ ‚ƒ recently served as vice president in April and down from May 2019’s of sales for Organic West Milk. For more information, visit www.vivolac.com 39.1 percent. June 19, 2020 CHEESE REPORTER Page 9

recent months and their resil- NY Ag Department General Mills, Foremost Farms Launch iency is being tested. We believe Reminds Dairy Regenerative Dairy Pilot In Michigan regenerative agriculture builds and strengthens farmer resilience Farmers To Only Sell Minneapolis, MN—General Mills more than 14,000 acres, were cho- so they can better withstand pres- this week announced the launch- sen for their proximity to General sures, be it societal, financial or To Licensed Dealers ing of a three-year regenerative Mills’ dairy manufacturing facility environmental,” said Doug Mar- Albany, NY—The New York dairy pilot in western Michigan, in Reed City, MI, which produces tin, president of the General Mills State Department of Agriculture a key sourcing region for its fluid a variety of Yoplait products. US yogurt business. and Markets recently reminded all milk supply. As the pilot begins, Under- “Consumers increasingly want farmers, including the state’s dairy General Mills, the maker of standing Ag consultants will meet to support brands and companies farmers, to only sell to licensed Yoplait, Liberte and Mountain with each dairy farmer to co- they trust are acting as environ- dealers. High yogurt products, has part- develop and implement custom mental stewards,” Martin added. New York law requires farm nered with Foremost Farms USA regenerative management plans “This pilot with Yoplait is a great product and milk dealers to be and consultant Understanding Ag for a portion of their operation. example of the role our brands can licensed and provide security for to pilot regenerative practices and Throughout the pilot, partners will play in unleashing the scale of our purchases made from New York provide support to participating monitor data and measure impacts supply chain — supporting farm- state producers. This is intended dairy farmers. to soil, biodiversity, water, animal ers, promoting animal welfare, and to ensure financial protection to Implementing regenerative well-being and farm profitability. improving the health of the planet, farmers in the event of a default in practices on dairy farms requires “Our goal around sustain- all while delivering a great-tasting payment from the dealer. a holistic approach to managing ability is to measure stewardship product.” Milk dealers are required to cows, land and manure, General and member-owner success so we This is the third regenerative be licensed with the New York Mills said. continually explore partnerships agriculture pilot that General State Department of Agricul- Regenerative agriculture is a with industry experts and custom- Mills has launched, and the first ture and Markets if they handle holistic, principles-based approach ers,” said Greg Schlafer, president for its dairy ingredient supply, since at least 3,000 pounds of milk per to farming and ranching that seeks and CEO, Foremost Farms USA, making a commitment last year to month. Milk dealer licenses must to strengthen ecosystem and com- which has a milk processing plant advance regenerative agriculture be renewed every year. munity resilience, according to in Greenville, MI. practices on 1 million acres of Licensed dealers who purchase General Mills. These practices pull “The Regenerative Dairy Pilot farmland by 2030. In March 2019, milk directly from producers or carbon from the air and store it in Program in Michigan gives our General Mills launched a regen- cooperatives are required to secure the soil and can help the land be farmers the chance to reduce erative oat pilot with 45 farmers their purchases by either partici- more resilient to extreme weather water and wind erosion all while across North Dakota, Saskatch- pating in the state’s Milk Produc- events. providing top quality feed to their ewan and Manitoba implement- ers Security Fund (MPSF) or by Also, regenerative agriculture animals,” Schlafer continued. “A ing practices on more than 50,000 filing full alternate security in the practices help to increase water highly nutritious diet helps ensure acres of farmland. And in January form of a bond or letter of credit infiltration, improve nutrient healthy, productive cows, which in 2020, the company launched its covering a minimum of 12 days’ cycling, and reduce soil erosion turn contributes to a stronger bot- second pilot consisting of 24 farm- purchases. Milk sales between which have been shown to posi- tom line on the farm.” ers growing wheat across a collec- cooperatives are exempt from this tively impact the quality of nearby “In the midst of very challeng- tive 17,000 acres in Kansas. security provision. lakes, rivers and streams. ing times for dairy farmers, the General Mills is supporting a Dealers who elect to join the These benefits can translate to Michigan pilot is designed to sub- team of researchers from Cornell MPSF are required to report their farmers’ pocketbooks by ensuring stantially build soil health, miti- University and the University monthly purchases from produc- that more nutrients stay in the field gate harmful runoff and erosion, of Wisconsin to model holistic ers/co-ops and pay an assessment, to be absorbed by plants rather than restore natural ecosystem func- impacts from change in farm man- currently set at $.012 per hundred- lost to erosion, General Mills said. tion, and revitalize farm and rural agement practices. This team is weight, on such milk purchases. Regenerative practices on dairy economies,” said Dr. Allen Wil- developing data-driven tools that In order to receive financial pro- farms can look slightly different liams, six generation farmer and are intended to empower dairies to tections available, dairy producers than row crop farms, specifically rancher and founding partner at build resiliency in their businesses must: incorporating adaptive grazing on Understanding Ag, which is based and the dairy ecosystem. Models  Sell their milk only to pastures and cropland. in Fort Payne, AL. will be adapted and used to inform licensed dealers. Only sales to The three dairy farms in the “As an industry, dairy farms actions in the three-year Michigan licensed dealers are covered under pilot, which collectively manage have been especially hard hit in pilot. Article 21 of the New York State Agriculture and Markets Law. The dealer must be licensed at the time of the transaction.  Ensure that the sale of milk between the producer and dealer, for which a claim is made, has occurred within 40 calendar days from the earliest unpaid transac- tion date at the time the clai is filed. Unpaid transactions that occur after the 40-calendar-day period will not be eligible for reim- bursement.  File a claim of nonpayment with the New York State Depart- ment of Agriculture and Markets in a timely manner. In the event the department has issued a notice to file claims, claims must be sub- mitted by the date specified in the published notice. Farm product dealers are also required to be licensed in New York state. All agricultural prod- ucts grown or raised in the state are covered, except for dairy, eggs and timber. For more information, visit www.ivarsoninc.com Page 10 CHEESE REPORTER June 19, 2020

tory and the many problems that Rumiano Credits Creative Problem were overcome during those years, we don’t have the luxury of think- Solving, Collaboration To Beat Virus ing about the insurmountable,” CHEESE Crescent City, CA—Cheese and and once a week delivery in Wil- Baird said. “We just have to be very cre- 1919-2019 HONORING THE PAST, dairy operations need to increase lows/Orland/Chico. LOOKING TO THE FUTURE. planning and collaboration with “During these challenging times ative in our problem-solving and industry partners to stay profitable brimming with uncertainty, we’re be willing to change old rules and in the post-coronavirus food man- prouder than ever to be part of habits if they do not fit the present We remain working diligently ufacturing sphere. such a wonderful community,” moment,” he said. to have much more of a collabora- That was the advice given Baird said. It’s hard to pinpoint the most tive planning effort and real time by Joe Baird, CEO of Rumiano “We will continue to find difficult problem, because they’re communication with our custom- Cheese Company here. He also innovative ways to bring healthy all interconnected, Baird said. We ers, Baird said. “It’s a time of tre- stressed the importance of creative options to homes across this great are working across our vertical sup- mendous change. It’s staying calm problem-solving, and an overall nation,” he continued. ply chain from the dairies, to the and managing a large program of need for calm. Rumiano also released three last mile, to the consumer’s front change that fluctuates every day.” Seldom has our resolve been new cheeses under its Redwood door. Rumiano Cheese is also look- tested as much as this moment, Coast brand to support frontline “Like the entire world, the ing at new opportunities to gain Baird said. Our manufacturing, healthcare workers in California. reduction of food service caused ground in its key markets and strat- packaging, and logistics teams are Through the month of May, $1 many knock-on affects in both sup- egies. working hard to ensure that our from every package sold of Rumi- ply as well as prices in the market,” “If we can be more nimble and products get delivered on time. ano’s Redwood Coast line was Rumiano said. responsive to our customers’ needs, As part of that effort, Rumiano donated to the UCSF COVID-19 “That was coupled with the then we can come out of this Cheese has expanded its e-com- Response Fund and other non- huge spike in retail which has set- stronger than when we entered it. merce and retail channels quickly. profit organizations across Califor- tled down but it is still way ahead Being able to gain long-term mar- Its online store has been improved, nia. of the baseline months going into ket share in our retail business and and the company was able to The three new flavors in the the year,” he said. retool the foodservice space based launch Board at Home. Redwood Coast line include Wild “We’re seeing another wave upon win/win partnerships will be Rumiano collaborated with Arabian Nights – of changes driven by other pro- important,” he continued. small-batch cheese makers and with Za’atar Seasoning; Borderline tein categories in crisis, plus very For more information on the other specialty food producers in Blaze – Smoked Jalapeno Cheddar; unpredictable order patterns,” he new products and initiatives, visit the California and Southern Ore- and Tuscan Temptress – Mozzarella continued. www.rumianocheese.com. gon communities to create Board with Basil and Sun-Dried Tomato. at Home, hailed as “the ultimate The new flavors, packaged in solicitations is for delivery from stay-at-home wine and cheese sur- 8-ounce blocks and sold at natu- Food Box Contracts (Continued from p. 1) July 6 through Sept. 30, 2020. This vival kit.” ral food stores and major grocery fluid milk is being purchased under Each Board at Home kit is chains, joins other Redwood Coast USDA has reviewed these propos- the authority of Section 32. curated with artisan cheese, wine, varieties including Sriracha Jack, als and found they demonstrate Under solicitation 2000007041, and selected accompaniments. Seoul Spice and Island Fire Dance. that firms can meet the distribu- USDA awarded contracts for the Purchases support specialty cheese tion and delivery requirements. following fluid milk products: makers and local dairy industry Nothing Insurmountable For 100 USDA said it will also solicit 72,900 half-gallon containers of members. Likewise, 5 percent of all Year-Old Company additional contracts to ensure con- 2 percent, in a range of $1.2677 proceeds benefit restaurant relief Rumiano Cheese celebrated its tinued distribution of food boxes. to $1.5100 and a total price of efforts including the LEE Initia- centennial anniversary last sum- Between May 15 and June 17, $97,004.34; 118,800 gallons of tive, providing emergency assis- mer and while the pandemic has distributors have delivered over whole milk, in a price range of tance to independent restaurants dismantled and threatened food 17 million food boxes to approxi- $2.70 to $2.78 and a total price and their staff. manufacturing facilities across the mately 3,200 non-profit organiza- of $325,512.00; and 834,300 half- Board at Home kits are now world, the company has the benefit tions across the US. gallon containers of whole milk, in available now for same-day deliv- of 100 years of experience. USDA last month approved a price range of $1.3100 to $2.2500 ery in the San Francisco Bay Area, “Given that we are standing on $1.2 billion in contracts under the and a total price of $1,446,020.28. same-day delivery in Los Angeles, the shoulders of 101 years of his- Farmers to Families Food Box Pro- No offers were received for gram through which USDA will 16,200 half-gallons. Contracts purchase $317 million in a variety were awarded to: of dairy products and $175 million Borden Dairy: 24,300 contain- in a combination box of dairy, fresh ers at a total price of $48,194.19. produce or meat products. Suppli- DFA: 259,200 containers at a ers are packaging these products total price of $380,734.83. into family-sized boxes, then trans- GH Dairy El Paso: 8,100 porting them to non-profits serv- containers at a total price of ing Americans in need from May $11,745.00. 15 through June 30, 2020. Hiland Dairy Foods: 234,900 In other USDA dairy commod- containers at a total price of ity procurement developments, $413,586.00. USDA on Thursday issued a solici- Milkco, Inc.: 167,400 contain- tation seeking a total of 8,803,200 ers at a total price of $396,708.12. pounds of low moisture part skim Prairie Farms Dairy: 283,500 shredded Mozzarella cheese, 6/2- containers at a total price of pound packages, for delivery in $546,288.48. August, September, October and Royal Crest: 48,600 containers November. This shredded Mozz is at a total price of $71,280.00. being purchased under the author- Under solicitation 2000007040, ity of Section 32 for use in TEFAP. contracts were awarded for a total Offers are due by June 30, at of 14,400 half-gallons of whole 9:00 a.m. CST. For details, contact milk, in a price range of $1.4197 Mary Mahoney, at (816) 926-2501; to $1.6200 and a total price of email [email protected]. $21.164.76. Contracts were to: USDA this week also announced Darigold: 10,800 containers at a purchase contract awards for fluid total price of $15,332.76. milk under two separate solicita- HP Hood: 3,600 containers at a Visit https://register.gotowebinar.com/register/8007259807458100495 tions. The fluid milk under both total price of $5,832.00. June 19, 2020 CHEESE REPORTER Page 11

Canada’s TRQs industry is able to reap the full decision to allocate a significant  A compensation program. (Continued from p. 1) range of benefits negotiated by portion of the CUSMA dairy DPAC said it recognizes the USTR and its interagency partners import licenses to dairy processors. government decision on TRQ of further processed food products, at US Department of Agriculture,” By allocating the majority of the allocations as an important step other than cheeses, by the proces- Vilsack continued. agreement’s TRQs to Canadian in the right direction, and wants sor during the reference period; “US dairy farmers and coopera- dairy processors, the government to emphasize the importance of a and 20 percent is allocated to fur- tives are ready to help increase plays an important role in ensur- comprehensive trade compensa- ther processors on a market share deliveries of high-quality US dairy ing more stability in the Canadian tion program for dairy processors to basis based on the kilograms of products to the Canadian market, dairy market in the context of maintain a viable dairy processing industrial cheeses used by the fur- but Canada’s TRQ allocations fall trade agreements and the corona- sector that will continue to invest ther processor in the manufacture far short of the full potential of its virus pandemic, according to the and innovate to meet customer of further processed food products, commitments under USMCA,” Dairy Processors Association of and consumer needs. other than cheeses, during the ref- said Jim Mulhern, NMPF’s presi- Canada (DPAC). Canada’s implementation of erence period. dent and CEO. “Canada has cho- In conformity with the Cana- CETA has come under criticism TRQs for different dairy product sen once again to manipulate its dian government commitment to from Eucolait. The quality of the categories have different alloca- access commitments in order to fully and fairly compensate the market access for EU cheese under tion calculations. For example, for protect its tightly controlled dairy dairy sector for the last three trade CETA “has been rather disap- butter and cream powder, 80 per- market and US farmers will bear agreements (the Comprehensive pointing,” Eucolait noted a year cent is allocated to processors, 10 much of the brunt of this biased Economic and Trade Agreement, ago. “The administration system percent is allocated to further pro- interpretation of USMCA’s dairy or CETA, with the EU; the Com- of the quota has led to a number cessors, and 10 percent is allocated provisions. prehensive and Progressive Agree- of anomalies which have severely to distributors. For concentrated or “USTR should act quickly to ment for Trans-Pacific Partnership, curtailed the export opportunities condensed milk, 85 percent is allo- ensure Canada is held strictly or CPTPP, with 10 other countries for EU cheese exporters.” cated to processors and 15 percent responsible for abiding by the in the Asia-Pacific region; and the These anomalies include late is allocated to distributors. intent of USMCA to promote CUSMA), DPAC has been advo- usage arising from levels of quota USDEC and NMPF called fairer trade between our nations,” cating for two key tools to mitigate allocation transfers, leading to a attention to the fact that these Mulhern added. trade impacts for dairy processors: “rush” at the end of the year and TRQ allocations undermine the Canada’s dairy processors wel-  The allocation of TRQs to “very slack access” in the begin- intent of the USCMA’s dairy pro- comed the Canadian government’s dairy processors; and ning of the year, Eucolait stated. visions by thwarting the ability of the US dairy industry to make full use of the trade agreement’s market access opportunities. USDEC and NMPF have repeatedly warned that the full benefits of this trade agreement will not materialize without careful EnsureEnsure youryour monitoring and stringent enforce- ment of Canada’s USMCA com- mitments. They urged the US cheesecheese isis Trade Representative (USTR) to immediately raise this issue with label friendly Canada and insist that Canada label friendly adheres faithfully not just to the letter of its commitments under withwith USMCA, but to its spirit as well.

“Canada’s actions place the US dairy industry at a disadvantage by discouraging utilization A new innovation in anti-cake technology for shredded, cubed of the full use of the and crumbled cheeses.

TRQs and limiting the ® market access... FloAm Dairy improves the ef ciency of your cheese production and increases shelf life of your products with the added bene ts of: —Tom Vilsack, USDEC • Natural, dairy-based, non-GMO, label-friendly ingredients • Excellent ow and low-dust characteristics “Canada’s administration of • Non-browning in oven melt performance previous TRQs under existing • Flexible application levels tailored to meet unique quality free trade agreements gave the needs vs. limits of traditional anti-cake US dairy industry ample cause for concern, which has unfortunately • Broad functional capabilities – anti-mold, oxygen scavenging been confirmed by the announced and customized blends TRQ allocations,” said Tom Vil- sack, USDEC’s president and CEO. “Canada’s actions place the ® US dairy industry at a disadvan- Keep your label clean and your products fresh with FloAm Dairy . tage by discouraging utilization of Contact your Allied Blending representative today. the full use of the TRQs and limit- ing the market access granted by USMCA. Level 2 Certified “We urge the US government to act immediately to ensure that ©2018 Allied Blending LP 1-800-758-4080 • www.alliedblending.com All rights reserved. these provisions are implemented in good faith so that the US dairy For more information, visit www.alliedblending.com PEOPLE

CPage 12 OMPANY NEWSCHEESE REPORTER June 19, 2020 We look at cheese differently.

www.cheesereporter.com/events.htm

SUPPLIER NEWS ...because we don’t just Registration Open For CDR Certificate In see cheese, we see the Dairy Processing Online Short Course whole picture. 1.866.404.4545 www.devilletechnologies.com —Online registration is milk; milk quality from farm to Madison Cheese Reporter Ad.indd 1 2018-01-03 11:52 PM open for the Wisconsin Center plant; processing equipment 101; Dairy Connection, for Dairy Research’s (CDR) Cer- food safety and sanitation; pro- PLANNING GUIDE tificate in Dairy Processing short duction of dairy ingredients; pro- ACS Present July 12: IFT20 Virtual Experi- course, which kicks off Sept. 2. duction of other dairy products; Monitoring Milk On ence. For details visit www.ift. The entire course, which typi- production of cheese; cheese rip- org. cally includes an introductory ening and defects; and function- The Farm Webinar • ality and applications of dairy session at Babcock Hall on the Denver, CO and Madison—The Cancelled: 37th American UW-Madison campus, will be held ingredients. Society (ACS) Cheese Society Annual Confer- exclusively online for 10 weeks. During the 10-week program, and Dairy Connection, Inc. have ence & Competition This year’s introductory session a live-streamed lecture/discus- teamed up to offer a special webi- • will be a virtual event, allowing sion session will allow interaction nar on the best ways to monitor New Date: July 27-31 - ADPI, participants to meet coordinators between all participants in the pro- milk on the farm. ABI Virtual Joint Annual Con- and other students; discuss back- gram. The session will be recorded ference. More details available grounds, motivations and aspira- for those unable to attend. The June 24 webinar will take soon at www.adpi.org/events. tions; and have a CDR IT expert Each participant will be assigned place at 3 p.m. CST. It’s one of a • on hand to ensure each student a mentor by their sponsoring com- four-part series covering a variety Cancelled: August 6 - 7 - Idaho has access to the online learning pany. The mentor provides addi- of topics offered to industry mem- system. tional guidance and support to the bers free through the ACS partner- Milk Processors’ Association The course is a training program participants during the course. ship with Dairy Connection. Conference. For details visit focused on providing dairy plant Examples of a mentor would be Joe Klopfenstein, DVM, will www.impa.us/ operators with a clear understand- a senior level cheese maker, or a discuss strategies to improve milk • ing of plant processes. Adminis- supervisor/team leader in the dairy quality, cheese quality, and animal Cancelled: Sept. 6-9 - Inter- tered by CDR, the program will use processing area. Students working health and welfare. Klopfenstein national Whey Conference, a practical applications approach in a non-dairy related industry can developed strategies for monitoring Dublin, Ireland. Visit www.inter- to educate students on the basic select a mentor that is related to milk quality that would translate nationalwheyconference.com. aspects of dairy processing. the course project they are plan- to the farm or vet practice level. • Specifically, this hybrid course ning. It also is possible to ask for a This included monitoring for SSC, Cancelled: Sept. 29-Oct. 3 will feature a 10-week series of mentor from the staff at CDR. bacteria count, Staph counts and - World Dairy Expo, Alliant modules covering key aspects of The cost for the 10-week certifi- Staph aureus surveillance, mastitis Energy Center, Madison. dairy processing through short, cate program is $1,000 per student. culture and treatment selection. • online learning sessions. The 10 For more complete details, visit To sign up, visit www.cheeseso- Oct. 13-15: NCCIA Annual Con- modules include: understanding www.cdr.wisc.edu/shortcourses. ciety.org. ference, Wilbert Square Events Center, Brookings, SD. Visit A discussion on the trends and www.northcentralcheese.org. Midwest Dairy Forum Moves To Virtual consumer behaviors that are shap- • Platform; To Look At Post-COVID Retail ing the future of food, with a spe- Oct. 25-28: NMPF, UDIA, NDB cific focus on the dairy industry, Joint Annual Conference, Rosen Minneapolis, MN—The third the coronavirus pandemic, MDA will be led by Mike Lee of The Shingle Creek, Orlando, FL. For annual Dairy Experience Forum reported. In March of 2020, 55 Future Market and Alpha Food updates, visit www.nmpf.org. will take place Wednesday, July 15 percent of consumers reported Labs. • online, event host Midwest Dairy they had purchased groceries Lee will highlight the 21st cen- New Date: Oct. 25-28 - IAFP Association announced Wednes- online and 21 percent of shoppers tury eater – one who demands 2020, Huntington Convention day. specifically said they were buying foods that fulfill needs regarding Center, Cleveland, OH. Visit The virtual venue will serve as milk online. health, sustainability, and experi- www.foodprotection.org. a way for dairy farmers, processors With e-commerce experiencing ence. He will also describe how • and retailers to share actionable accelerated growth, this session these consumers will impact the Nov. 5: 33rd Annual World consumer insights, without ever uncovers where the opportunities market for decades to come, and Cheese Awards, Oviedo, Spain. leaving home. are for dairy and e-commerce. what food producers, processors, Visit www.gff.co.uk/awards/ This year’s forum which will Participants will also learn how distributors, brands, and retailers world-cheese-awards. feature presentations and panels, dairy can be the environmental can do to meet their needs and • including a live consumer focus solution to good nutrition. achieve future success. Nov. 16-17: PLMA Private Label group sharing first-hand accounts The dairy industry has been The final presentation, how to Trade Show, Rosemont Conven- of shopping habits and needs, on a path of continuous improve- navigate change, will include ways tion Center, Rosemont, IL. For according to organizers. ment when it comes to practices for companies to creates clarity, details, visit www.plma.com. Participants will hear first-hand that decrease its carbon footprint, alignment, and confidence regard- • from consumers regarding their improve water quality and reduce less of new market conditions. Jan. 17-19, 2021: Winter Fancy opinions on dairy, how they make and optimize water usage, MDA The virtual conference runs Food Show, Moscone Center, their purchasing decisions and how said. from 10 a.m. to 3:15 p.m, central San Francisco. Details available they view dairy farming. The panel will feature a dairy standard time at www.specialtyfood.com. Another discussion will look at farmer, cooperative processor Cost to participate is $25 for how dairy product growth in the and a consumer branded product dairy farmers and $50 for other Cheese Reporter encourages e-commerce sector be sustained manufacturer about what they are industry members. you to contact associations after the pandemic settles. doing to reach the industry’s 2050 Registration and more details for details, updates or possible “Freshness” was a barrier to Environmental Stewardship Goals, are available at www.dairyexperi- cancellations. purchase dairy online prior to organizers stated. enceforum.com. June 19, 2020 CHEESE REPORTER Page 13

ld's Dairy I or nd W u st CLASSIFIED ADVERTISING e r h y t W g phone: (608) 246-8430 fax: (608) 246-8431

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Classified Advertisements should be placed 9. Promotion & Placement 13. Cheese & Dairy Products by Thursday for the Friday issue. Classified ads charged at $0.75 per word. Display Classified PROMOTE YOURSELF - By contact- KEYS MANUFACTURING: Dehydra- tors of scrap cheese for the animal feed advertisements charged at per column inch ing Tom Sloan & Associates. Job industry.TU-WAY Contact us for your scrap at rate. For more information, call 608-316-3792 enhancement thru results oriented professionals. We place cheese mak- (217)3000LD 465-4001 or email keysmfg@aol. or email [email protected] com. ers, production, technical, maintenance, 1820 Single Direction engineering and sales managementLower Discharge 1. Equipment for Sale 5. Walls & Ceiling Cheese Portioner15. Sheep Milk Cheese Cutter people. Contact Dairy SpecialistCuts blocks orDavid any wire-cuttable product Reduces wire cutable product into uniform FOR SALE: 2-DAMROW 10,000 EXTRUTECH PLASTICS NEW! Anti- Sloan, Tom Sloan or intoTerri uniform Sherman. pieces prior to furtherSHEEP processing. MILK AVAILABLE:portions We forhave dicing, shredding, or blending. GALLON MILK SILOS. Serial numbers microbial POLY BOARD-AM sanitary TOM SLOAN & ASSOCIATES, INC., recently completed our growth plans General Machinery andCorporation ramped up productionGeneral of a con- Machinery Corporation 117435 and 117436. Approximately panels provide non-porous, easily PO Box 50, Watertown, WI 53094. 1-888-243-6622sistent, high-quality supply of sheep1-888-243-6622 12-foot diameter. Good Tanks, Good cleanable, bright white surfaces, perfect Phone: (920) 261-8890 or FAX:Email: (920) [email protected] Email: [email protected] milk. Shipments available in both fluid Alcoves with Andersen Level sensors. for incidental food contact applications. 261-6357; or by email: [email protected] www.genmac.com tanker or frozen totes which enable com. $20,000 for the pair. Call 920-564-3242. CFIA and USDA accepted, and Class us to ship anywhere throughout Ask for Phil. A for smoke and flame. Call Extrutech 10. Consultants the U.S., and in quantities to match Plastics at 888-818-0118 or www.epi- ALFA-LAVAL SEPARATOR: Model your current production needs and plastics.com for more information. MRPX 518 HGV hermetic separator. SQF CONSULTANT + future growth. Convenient long-term or short-term agreements are avail- Can be set up for warm or cold. WEST- IMPLEMENTATION 1810ASSISTANT: Champ Do 6. Real Estate able. For more information, email FALIA SEPARATOR: Model MSA 200. you wish to obtain SQFCheese Certification Cutter 1800 Champ DAIRY PLANTS FOR SALE: for your facility? Could you benefit from [email protected]. Call Great Lakes Separators at (920)  Cuts cheese economically Cheese Cutter the use of a local, industry experienced 863-3306 or e-mail drlambert@dialez. http://dairyassets.webs.com/acqui-  Optional one or  Cuts cheese economically sitions-mergers-other. Contact Jim SQF Consultant? I have two-wire assisted cross many cut 16. Warehousing net.  Air-operated vertical feed  Capacity of up to at 608-835-7705; or by email at jim- small and mid-sized cheese manufac- COLD STORAGE SPACE CapacityAVAIL- of up to FOR SALE: Car load of 300-400-500 7” x 11” x 14” [email protected] turers, cold storage warehouses, and ABLE: Sugar River Cold Storage 7” x 11” x 14” in  Air-operated down feed late model open top milk tanks. Like  Air-operated down feed ingredient brokers in Wisconsin Optional swing and harp Monticello, WI. has space available in new. (262) 473-3530 7. Help Wanted  Optional swing harp Illinois to achieve their SQFand leveling Certifica- pads it’s refrigerated buildings. Temp’s are and leveling pads WESTFALIA SEPARATORS: New Have you recently lost your job or tion, and I want to help you too. I can 36, 35 and 33 degrees. We are SQF arrivals! Great condition. Model num- down-sized from your position? Apply navigate the process,General provide various Machinery CertifiedCorporation and work with yourGeneral schedule. Machinery Corporation Contact Eric at 608-938-1377 or visit ber 418. Call GREAT LAKES SEPA- for a free 3-month subscription to templates, training, and personalized11-888-243-6622-888-243-6622 1-888-243-6622 Email: [email protected] website sugarrivercoldstorage.Email: [email protected] RATORS at (920) 863-3306 or e-mail Cheese Reporter by calling 608-316- guidance to make the process easier. www.genmac.comcom. www.genmac.com [email protected]. 3792 or visit cheesereporter.com for I am based out of Madison, WI. Call FOR SALE: 1500 and 1250 cream the latest job offerings Brandis Wasvick at 651-271-0822 or tanks. Like New. (800) 558-0112. (262) 8. Positions Wanted Email: bluecompasscompliance@ 473-3530. gmail.com or visit BlueCompass- Compliance.com for more informa- SEPARATOR NEEDS - Before you buy tion, testimonials, and to see how you a separator, give Great Lakes a call. Gasket Material and I can get started today. BRANDIS TOP QUALITY, reconditioned machines for the WASVICK, SQF AND FOOD SAFETY at the lowest prices. Call Dave Lam- COMPLIANCE CONSULTANT AND bert, GREAT LAKES SEPARATORS at Dairy Industry ASSISTANT (920) 863-3306; [email protected] A New Product that Custom Harp for more information. is officially accepted* 13. Cheese & Dairy Products & Platen Cart for use in Dairy  Holds 24 Harps as well as 20 Platens 2. Equipment Wanted Plants inspected VINTAGE CHEDDAR CHEESE: Aged  Drawer for Wiring Tools by the USDA premium Cheddar cheese from 7 years WANTED TO BUY: Westfalia or Alfa-  Custom Stainless Steel, DA Finish under the Dairy to 22 years old. Made in Black Creek, Laval separators. Large or small. Old or Plant Survey Program. WI. White and colored. Available in pallet General Machinery Corporation new. Top dollar paid. Call Great Lakes 1-888-243-6622 or individual 40-pound blocks. Call 715- Email: [email protected] *USDA Project Separators at (920) 863-3306 or email TC Strainer Gasket 735-6922. www.genmac.com Number 13377 [email protected] 4. Cheese Moulds, Hoops COMECOME TOTO THETHE EXPERTSEXPERTS WILSON HOOPS: NEW! 20 and 40 440-953-8811TC Strainer Gasket WHENWHEN YOU'REYOU'RE TALKINGTALKING pound hoops available. Contact KUSEL [email protected] EQUIPMENT CO. at (920) 261-4112 or www.gmigaskets.com SEPARATORSSEPARATORS && CLARIFIERSCLARIFIERS [email protected]. 80 Years of Combined Western Repack Experience and Honesty in the Sale of: We Purchase Fines and Downgraded Cheese • Separators, Clari ers & Centrifuges Reclamation Services • Surplus Westfalia & Alfa Laval Parts • Cheese Salvage/Repacking • Unbeatable Pricing • 640# Block Cutting • 24/7 Trouble Shooting

Handling cheese both as a Call Dave Lambert at (920) 863-3306 service and on purchase. or Dick Lambert at (920) 825-7468 Bring us your special projects GREATGREATGREAT LAKESLAKESLAKES SEPARATORS,SEPARATORS,SEPARATORS, INC.INC.INC. Western Repack, LLC P: (920) 863-3306 • F: (920) 863-6485 (801) 388-4861 E: [email protected] Page 14 CHEESE REPORTER June 19, 2020

Federal Order Class 1 Minimum Prices & DAIRY FUTURES PRICES Other Advanced Prices - June 2020 SETTLING PRICE *Cash Settled Class I Base Price (3.5%) ...... $16.56 (cwt) Date Month Class Class Dry Block III IV Whey NDM Cheese Cheese* Butter* Base Skim Milk Price for Class I ...... $10.62 (cwt) Advanced Class III Skim Milk Pricing Factor ...... $13.29 (cwt) 6-12 June 20 20.42 13.35 34.750 93.750 2.240 2.0164 177.275 6-15 June 20 20.60 13.35 34.750 93.750 2.240 2.1830 175.300 Advanced Class IV Skim Milk Pricing Factor ...... $6.46 (cwt) 6-16 June 20 20.64 13.35 34.800 94.475 2.240 2.1850 175.300 6-17 June 20 20.37 13.35 34.800 94.500 2.240 2.1950 174.025 Advanced Butterfat Pricing Factor ...... $1.8023 (lb.) 6-18 June 20 20.92 13.34 35.750 92.800 2.251 2.2080 175.500 Class II Skim Milk Price ...... $7.16 (cwt) 6-12 July 20 18.54 15.27 33.200 103.225 2.033 1.9570 199.025 Class II Nonfat Solids Price ...... $0.7956 (lb.) 6-15 July 20 19.27 15.23 33.500 104.500 2.085 2.0320 197.000 6-16 July 20 19.42 15.19 33.750 104.500 2.125 2.0500 194.500 Two-week Product Price Averages: 6-17 July 20 19.79 15.19 33.750 104.250 2.145 2.0950 189.500 Butter ...... $1.6598 lb. 6-18 July 20 20.43 14.82 34.750 103.000 2.187 2.1620 190.475 Nonfat Dry Milk ...... $0.8923 lb. 6-12 Aug 20 17.03 15.45 34.000 105.100 1.868 1.7970 199.250 Cheese ...... $2.0174 lb. 6-15 Aug 20 17.78 15.45 34.050 101.600 1.908 1.8720 197.975 Cheese, US 40-pound blocks ...... $2.0334 lb. 6-16 Aug 20 17.89 15.45 34.200 108.525 1.917 1.8970 197.000 6-17 Aug 20 18.09 15.45 34.200 108.175 1.980 1.9210 192.000 Cheese, US 500-pound barrels ...... $1.9734 lb. 6-18 Aug 20 18.54 15.35 34.500 107.500 2.040 1.9590 194.925 Dry Whey ...... $0.3674 lb. 6-12 Sept 20 16.62 15.66 35.000 108.625 1.833 1.7530 199.600 6-15 Sept 20 17.30 15.66 35.000 112.200 1.850 1.8160 198.750 6-16 Sept 20 17.36 15.75 35.000 112.150 1.852 1.8220 196.500 Class I Milk Prices: Federal Order Minimum 6-17 Sept 20 17.46 15.66 35.000 111.775 1.861 1.8350 191.500 6-18 Sept 20 17.74 15.73 35.050 111.000 1.893 1.8760 195.500 $20.00 2020 vs. 2019 6-12 Oct 20 16.47 15.68 34.500 111.000 1.825 1.7400 199.000 6-15 Oct 20 16.95 15.68 34.500 113.925 1.825 1.7870 195.000 $18.00 6-16 Oct 20 17.01 15.93 34.500 113.925 1.825 1.7960 196.750 6-17 Oct 20 17.01 15.93 34.500 113.500 1.825 1.7990 192.000 6-18 Oct 20 17.22 15.99 35.250 112.550 1.825 1.8210 192.000

$16.00 6-12 Nov 20 16.38 16.00 34.050 112.875 1.807 1.7240 197.375 6-15 Nov 20 16.70 16.00 34.050 115.600 1.807 1.7740 197.375 6-16 Nov 20 16.81 16.00 34.125 115.550 1.807 1.7740 196.750 6-17 Nov 20 16.81 16.00 34.125 115.450 1.807 1.7750 194.500 $14.00 6-18 Nov 20 16.88 16.00 35.250 114.750 1.810 1.7900 194.500 6-12 Dec 20 15.98 16.31 34.025 115.575 1.770 1.6910 197.000 6-15 Dec 20 16.30 16.31 34.025 115.625 1.770 1.7160 197.000 $12.00 6-16 Dec 20 16.22 16.31 34.025 117.000 1.770 1.7160 195.000 6-17 Dec 20 16.34 16.21 34.025 117.050 1.770 1.7200 193.000 6-18 Dec 20 16.46 16.21 34.700 116.000 1.770 1.7430 194.500

$10.00 6-12 Jan 21 15.89 16.25 35.000 116.100 1.731 1.6700 198.750 J F M A M J J A S O N D 6-15 Jan 21 15.91 16.25 35.000 116.300 1.731 1.6160 198.750 6-16 Jan 21 16.11 16.25 35.000 117.525 1.731 1.6870 198.750 6-17 Jan 21 16.11 16.25 35.000 117.400 1.731 1.6900 194.225 HISTORICAL MILK PRICES - CLASS I 6-18 Jan 21 16.15 16.25 35.000 117.000 1.731 1.6960 194.225 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 6-12 Feb 21 15.99 16.36 35.475 116.200 1.725 1.6750 199.975 6-15 Feb 21 16.02 16.36 35.475 117.100 1.725 1.6880 198.975 ‘17 17.45 16.73 16.90 16.05 15.20 15.31 16.59 16.72 16.71 16.44 16.41 16.88 6-16 Feb 21 16.01 16.36 35.475 117.775 1.725 1.6880 197.575 ‘18 15.44 14.25 13.36 14.10 14.44 15.25 15.36 14.15 14.85 16.33 15.52 15.05 6-17 Feb 21 16.02 16.36 35.475 117.900 1.725 1.6900 195.325 ‘19 15.12 15.30 15.98 15.76 16.42 17.07 17.18 17.89 17.85 17.84 18.14 19.33 6-18 Feb 21 16.16 16.36 35.475 117.200 1.725 1.6900 194.325 ‘20 19.01 17.55 17.46 16.64 12.95 11.42 16.56 6-12 Mar 21 16.06 16.21 35.500 116.475 1.733 1.6850 199.725 6-15 Mar 21 16.06 16.21 35.500 117.100 1.733 1.7010 199.725 $2.60 6-16 Mar 21 16.06 16.21 35.500 118.025 1.733 1.7010 198.725 $2.50 6-17 Mar 21 16.06 16.21 35.500 118.500 1.733 1.7030 196.475 DAIRY PRODUCT SALES $2.40 $2.30 6-18 Mar 21 16.06 16.21 35.500 117.625 1.733 1.7030 196.475 June 17, 2020—AMS’ National Dairy $2.20 $2.10 6-12 Apr 21 16.10 16.00 37.375 116.700 1.760 1.6900 197.725 Products Sales Report. Prices included $2.00 6-15 Apr 21 16.10 16.00 37.375 117.400 1.760 1.7010 197.725 are provided each week by manufactur- $1.90 6-16 Apr 21 16.10 16.00 37.375 118.300 1.760 1.7040 197.725 ers. Prices collected are for the (wholesale) $1.80 $1.70 6-17 Apr 21 16.10 16.00 37.375 118.300 1.760 1.7100 197.700 point of sale for natural, unaged Cheddar; $1.60 40-Pound 6-18 Apr 21 16.21 16.00 37.375 117.650 1.760 1.7140 197.700 boxes of butter meeting USDA standards; $1.50 Block Avg Extra Grade edible dry whey; and Extra $1.40 Interest - 24,730 5,895 3,263 9,051 382 23,628 10,006 $1.30 Grade and USPH Grade A nonfortified $1.20 CME vs AMS June 18 NFDM. $1.10 $1.00 J J A S O N D J F M A M J Week Ending June 13 June 6 May 30 May 23 CHEESE REPORTER SUBSCRIBER SERVICE CARD 40-Pound Block Cheddar Cheese Prices and Sales If changing subscription, please include your old and new address below Weighted Price Dollars/Pound Name ______US 2.1646 1.9050 1.6121 1.3737 Sales Volume Pounds Title ______US 10,901,946 11,137,544 10,660,076 10,114,021 Company ______500-Pound Barrel Cheddar Cheese Prices, Sales & Moisture Contest Address ______Weighted Price Dollars/Pound US 2.2141 1.9435 1.7397 1.4471 City/St/Zip ______

Adjusted to 38% Moisture New Subscriber Info E-Mail Phone ______US 2.0972 1.8442 1.6538 1.3761 Sales Volume Pounds Name ______US 12,913,377 12,381,701 10,294,918 11,288,940 Weighted Moisture Content Percent Title ______US 34.54 34.66 34.78 34.80 Company ______AA Butter Address ______Weighted Price Dollars/Pound US 1.8259 1.5985• 1.5604 1.4252 City/St/Zip ______

Sales Volume Pounds Old Subscriber Info E-Mail Phone ______US 4,219,011 11,435,775• 2,943,076 3,993,532 Extra Grade Dry Whey Prices TYPE OF BUSINESS: JOB FUNCTION: Weighted Price Dollars/Pounds ___Cheese Manufacturer ___Company Management US 0.3685 0.3661 0.3815 0.3840 ___Cheese Processor ___Plant Management Sales Volume ___Cheese Packager ___Plant Personnel US 7,697,451 6,956,788 4,997,371 7,279,068 ___Cheese Marketer(broker, distributor, retailer ___Laboratory (QC, R&D, Tech) ___Other processor (butter, cultured products) ___Packaging Extra Grade or USPHS Grade A Nonfat Dry Milk ___Whey processor ___Purchasing Average Price Dollars/Pound ___Food processing/Foodservice ___Warehouse/Distribution US 0.9047 0.8820• 0.8459 0.8589 ___Supplier to dairy processor ___Sales/Marketing Sales Volume Pounds US 26,385,681 31,871,841• 36,927,313 31,350,268• Circle, copy and FAX to (608) 246-8431 for prompt response

June 19, 2020 CHEESE REPORTER Page 15

DAIRY PRODUCT MARKETS NATIONAL - CONVENTIONAL DAIRY PRODUCTS AS REPORTED BY THE US DEPARTMENT OF AGRICULTURE Dairy retail ad totals decreased both in the conventional and organic sectors this week. Conventional retail ads decreased by 16 percent, while organic ads decreased by 5 percent. Conventional ice cream in 48- to 64-ounce containers was the most advertised dairy item this WHOLESALE CHEESE MARKETS week. Organic milk in half-gallon containers, was the most advertised organic item.

Total conventional cheese ads declined by 19 percent week to week. Conventional cheese in NATIONAL - JUNE 12: Spot milk availability for cheese producers is tight in the East. In 8-ounce shred packaging was the most advertised cheese item. The average price of 8-ounce the Midwest, some contacts relay spot milk offers are quiet. Cheese is moving well through- shred cheese was $2.46, compared to $2.27 last week. Dairy ads for conventional butter and out the country. Governmental purchases, as well as retail/foodservice orders, are keeping organic saw percentage increases by, 85 percent and 175 percent, respectfully. cheese makers’ production schedules full. Cheddar supplies, specifically, are reportedly tight. A recent concern, as some foodservice customers have come closer to refilling their In half-gallon containers, the average price of conventional milk was $1.95, compared to $3.99 pipelines, is that CME market prices will respond bearishly. for organic milk, an organic premium of $2.04. Yogurt ads decreased on the conventional and organic aisles, by 24 and 58 percent respectively. Organic yogurt in 4- to 6-ounce containers NORTHEAST - JUNE 17: Eastern cheese makers are working through strong pro- held a weighted average price of $1.00, compared to the conventional weighted average price duction schedules. Adequate milk supplies are clearing to plants. Inventory levels are bal- of $.45, an organic premium of $.55. anced to lower in some outlets, as current demands are higher than manufacturers’ current production levels. Mozzarella and Provolone interests from restaurants are stable. Several eateries are receiving regular orders to fill consumers’ needs. There are reports foodservice RETAIL PRICES - CONVENTIONAL DAIRY - JUNE 19 sales have slowed a bit as some operations have filled their pipelines. Market participants report the demand for aged Cheddar from local farmers’ markets is healthy. Some buyers Commodity US NE SE MID SC SW NW have backed off on various market exchanges, due to the currently higher cheese prices, 3.06 2.88 3.14 2.80 2.94 3.31 2.97 compared to a few weeks ago. Butter 1# Cheese 8 oz block 2.50 2.38 2.57 1.92 2.03 2.74 2.75 Wholesale prices, delivered, dollars per/lb: Cheese 1# block 4.16 NA 4.53 NA 3.99 3.99 NA Cheddar 40-lb blocks: $2.9975 - $3.2850 Process 5-lb sliced: $2.4700 - $2.9500 Cheese 2# block Muenster: $2.9850 - $3.3350 Swiss Cuts 10-14 lbs: $3.2625 - $3.5850 6.69 NA NA 6.99 NA 4.99 7.52 Cheese 8 oz shred 2.46 2.43 2.57 2.24 2.18 2.50 1.87 MIDWEST AREA - JUNE 17: Cheese makers are maintaining busy work schedules. Cheese 1# shred 4.84 5.49 4.53 5.49 3.99 NA NA Most are reporting six- and seven-day work-weeks. Some relay being busier this year than Cottage Cheese 1.67 2.16 1.28 1.16 1.79 2.04 1.71 in years past. Spot milk prices vary by location. All spot milk prices, at this point in the week, remain at least $.50 over Class. Pizza cheese producers report gains in customer activity Cream Cheese 1.45 1.81 1.10 1.50 NA 1.50 1.56 as more pizza shops have reported stronger sales numbers week to week. Curds makers Flavored Milk ½ gallon 2.55 NA 2.50 NA 3.79 1.99 NA are busy now. However, some suggest that the usual season, which runs into Flavored Milk gallon 3.88 NA NA 4.99 NA NA 1.99 the fall with local and state fairs, among other outdoor activities, is questionable this year. Ice Cream 48-64 oz 3.06 3.05 3.13 2.70 3.16 3.42 2.43 Milk ½ gallon Wholesale prices delivered, dollars per/lb: 1.95 NA NA NA 1.89 1.99 NA Brick 5# Loaf: $2.9125 - $3.3373 Cheddar 40# Block: $2.6350 - $3.0350 Milk gallon 2.18 1.99 NA NA NA 2.49 1.99 Monterey Jack 10#: $2.8875 - $3.0925 Mozzarella 5-6#: $2.7125 - $3.6575 Sour Cream 16 oz 1.46 1.73 1.22 1.30 1.34 1.95 1.50 Muenster 5# $2.9125 - $3.3375 Process 5# Loaf: $2.4550 - $2.8150 Grade A Swiss 6-9#: $2.7775 - $2.8950 Blue 5# Loaf: $3.1800 - $4.2500 Yogurt (Greek) 4-6 oz .93 .91 1.00 .92 .96 .92 .97 Yogurt (Greek) 32 oz 4.00 3.50 3.61 4.91 3.29 NA NA WEST - JUNE 17: Some contacts report they are running more milk through cheese vats Yogurt 4-6 oz .45 .41 .50 .40 .44 .50 .56 than ever before and are fortifying the make process where they can. Retail cheese demand has remained strong. Foodservice accounts are still below seasonal purchase levels, but Yogurt 32 oz 2.37 NA 2.61 2.24 2.50 2.82 NA buyers are trying hard to refill the cheese pipeline. And with the added surge of government US: National Northeast (NE): CT, DE, MA, MD, ME, NH, NJ, NY, PA, RI, VT; purchases, the market segments form a trifecta that keeps cheese production at full capacity. Southeast (SE): AL, FL, GA, MD, NC, SC, TN, VA, WV; Midwest (MID): IA, IL, IN, A few manufacturers suggest their cheese facilities are running at over 125 percent design KY, MI, MN, ND, NE, OH, SD, WI; South Central (SC): AK, CO, KS, LA, MO, NM, capacity. Industry contacts report cheese supplies, although tight, are in better shape than OK, TX; Southwest (SW): AZ, CA, NV, UT; Northwest (NW): ID, MT, OR, WA, WY a few weeks ago. However, it’s still challenging for buyers to source the specific type and quantities of cheese they need. With the turbulent fall and rise of cheese prices, end users and suppliers are finding it more difficult to forecast market trends. Cash market prices in the US have risen to a point where they are not as competitive as cheese prices from the EU. ORGANIC DAIRY - RETAIL OVERVIEW National Weighted Retail Avg Price: Greek Yogurt 32 oz: NA Wholesale prices delivered, dollars per/lb: Cheddar 10# Cuts: $2.8725 - $3.0725 Butter 1 lb: $5.29 Greek Yogurt 4-6 oz: NA Cheddar 40# Block: $2.6250 - $3.1150 Monterey Jack 10#: $2.8600 - $3.1350 Cheese 8 oz shred: $3.50 Ice Cream 48-64 oz: NA Process 5# Loaf: $2.4725 - $2.7275 Swiss 6-9# Cuts: $2.8600 - $3.2900 Cheese 8 oz block: $3.50 Milk ½ gallon: $3.99 Cream Cheese 8 oz: $2.86 Milk gallon: $6.01 Yogurt 4-6 oz: $1.00 Sour Cream 16 oz: $2.50 FOREIGN -TYPE CHEESE - JUNE 17: Southern European countries’ intakes of cheese are ramping up as they prepare to reopen tourist activities in the coming weeks. However, there is uncertainty about how tourism will develop. Domestic demands, as well as cheese export to other countries, are unchanged from last week. German cheese sales have NDM PRODUCTS - JUNE 18 not yet reached pre-coronavirus levels, but processors are content with the orders they are receiving. Prices are increasing, but deliveries for low-priced cheeses, that were contracted NDM - CENTRAL: Low/medium heat NDM - EAST: Buyers’ demands are during the lock-down, are still taking place. NDM prices shifted lower on the bottoms steady to a bit higher, with lower spot of the range and mostly series. The slips in prices, although there are market partici- Selling prices, delivered, dollars per/lb: Imported Domestic prices resulted from mixed trading. Some pants not purchasing on the spot market. buyers, particularly those buying in larger Low/medium heat NDM production sched- Blue: $2.6400 - 5.2300 $3.0575 - 4.5450 volumes, are still finding deals. Others say ules have decreased a bit with tighter milk Gorgonzola: $3.6900 - 5.7400 $3.5650 - 4.2825 with cheese producers fortifying, NDM output in the region. Inventories are ade- Parmesan (Italy): 0 $4.4450 - 6.5350 spot loads are harder to find and particu- quate for spot/contract demand. High heat Romano (Cows Milk): 0 $4.2475 - 6.4025 larly hard to find under $1. Trading in most NDM prices are unchanged. Some buy- Sardo Romano (Argentine): $2.8500 - 4.7800 0 dairy powders was a bit more active this ers are purchasing spot loads from a few Reggianito (Argentine): $3.2900 - 4.7800 0 week, regionally. Overall, NDM markets manufacturers. However, loads are fairly Jarlsberg (Brand): $2.9500 - 6.4500 0 are mixed. Some contacts expect a bullish tight outside of contracted needs. Drying Swiss Cuts Switzerland: 0 $3.3000 - 3.6225 market to emerge as early as next week. schedules are light with other dry products Swiss Cuts Finnish: $2.6700- 2.9300 0 receiving the majority of drying time. NDM - WEST: International orders are good. Mexican buyers’ intakes are still LACTOSE: Spot prices are often in the WHOLESALE BUTTER MARKETS - JUNE 17 strong, especially with the higher value low $.50s. A number of Q3 contract prices of the peso. Many processors are manu- are in a similar price range. Production WEST: In the West, butter retail sales are in the spring. However, this year’s numbers facturing SMP for exports. While loads has increased over the last few weeks, but solid. According to industry players, the are shy of previous years due to COVID-19. are moving well through contracts in the inventories are still tight. Some contacts recent increases in wholesale prices are A growing number of butter market actors domestic market, spot transactions are suggest that lactose market activity may preventing some retailers from offering dis- suggest they are concerned about invento- also active. Low/medium heat inventories be slowing a bit, but they’re so far behind counted shelf prices. Export interests have ries coming into the fall. Some suggest they are plentiful. Production is active, but not that it’s hard to tell if that is fictitious, or not. declined as the US butter does not have a expect national inventory numbers to decline. competitive price advantage over butter from Butter markets have lost some of the wind as much as in the past weeks. High heat They offer various explanations to conflate other countries. Butter sales in the food- in their sails from Wednesday of last week, NDM prices are trending higher at the top this theory. Some buyers are looking for service industry are steady to still sluggish when they reached over $1.95. of the range. Supplies remain tight. Sev- maltodextrin in lieu of lactose because of depending on the area. Despite the easing eral manufacturers are not running many higher lactose prices. Other buyers have of phase restrictions, some restaurant own- NORTHEAST: Eastern butter makers loads of high heat NDM as low/medium their Q3 needs mostly covered and have ers have no interest in reopening and others have slowed their churns. Market partici- heat NDM remains their priority. moved on to other activities. are seeing limitations on seat in dining. The pants relay, with fewer cream loads clearing hope is that when more restrictions are lifted, to plants, lower butter production is occur- butter demands will further revive. ring. There are some operations churning contracted cream for their immediate orders. WEEKLY COLD STORAGE HOLDINGS CENTRAL: Butter makers report cream Ice cream and other Class II, cream-based SELECTED STORAGE CENTERS IN 1,000 POUNDS - INCLUDING GOVERNMENT remains out of their fiscal reach. Bulk butter manufacturers continue to purchase the DATE ...... BUTTER CHEESE offers are quiet and butter availability is a con- majority of available cream loads. Butter cern, in general. More and more butter plant retail sales are healthy, as manufacturers’ 06/15/20 ...... 80,581 85,872 managers relay production is moving heav- customers are purchasing stable orders. 06/01/20 ...... 80,524 92,726 ily to micro-fixing. Retail customers are busy Some industry contacts report their foodser- Change ...... 57 -6,854 and foodservice is steadily busier than earlier vice sales are down from last year. Percent Change...... 0 -7 Page 16 CHEESE REPORTER June 19, 2020

ings of dairy per day, the commit- CME CASH PRICES - JUNE 15 - JUNE 19, 2020 Dietary Guidelines tee found strong evidence pointing Visit www.cheesereporter.com for daily prices Advisory Panel Nears to positive health outcomes from 500-LB 40-LB AA GRADE A DRY dairy foods.” CHEDDAR CHEDDAR BUTTER NFDM WHEY End Of Review; According to the Center for MONDAY $2.3200 $2.5000 $1.8475 $1.0125 $0.3050 June 15 (-1¼) (-2) (-2¼) (+¾) (-¾) Science in the Public Interest, Report Due Out By the DGAC “affirmed the science TUESDAY $2.3250 $2.5000 $1.8225 $1.0125 $0.3150 June 16 (+½) (NC) (-2½) (NC) (NC) End Of June underlying recommendations WEDNESDAY $2.3300 $2.5000 $1.8000 $1.0300 $0.3050 Washington—The 2020 Dietary to limit saturated fat in the diet, June 17 (+½) (NC) (-2¼) (+1¾) (-1) Guidelines Advisory Committee which had been under attack in THURSDAY $2.2800 $2.5000 $1.8075 $1.0200 $0.3175 (DGAC) held a webcast meeting part from self-interested industry June 18 (-5) (NC) (+¾) (-1) (+1¼) Wednesday on its draft advisory groups.” FRIDAY $2.2850 $2.6500 $1.8500 $1.0325 $0.3275 The Academy of Nutrition and June 19 (+½) (+15) (+4¼) (+1¼) (+1) report, with updates on its system- atic reviews and discussions of its Dietetics recently expressed con- Week’s AVG $2.3080 $2.5300 $1.8255 $1.0215 $0.3140 cern about the “impact of artificial, Change (-0.0605) (-0.0150) (-0.0885) (+0.0420) (-0.0095) evidence-based advice on a variety of diet and health topics. arbitrary time constraints” on the Last Week’s $2.3685 $2.5450 $1.9140 $0.9795 $0.3235 guideline development process. AVG The DGAC will finalize its advisory report based on the meet- Pursuant to the DGAC’s charter 2019 AVG $1.6795 $1.7995 $2.3785 $1.0465 $0.3450 filed Oct. 5, 2018, it was expected Same Week ing discussions and submit its final report to the secretaries of the that the committee would com- USDA and Health and Human plete the objectives for which it MARKET OPINION - CHEESE REPORTER Services (HHS) at the end of June. was established within two years from the date the charter was filed. Cheese Comment: Three cars of blocks were sold Monday at $2.5000, which USDA and HHS will post lowered the price. On Tuesday, 2 cars of blocks were sold at $2.5000, which left the the final report online, send out “We strongly urge the DGAC price unchanged. Two cars of blocks were sold Wednesday at $2.5000, which left the a public notification, and open a to utilize the entire two years for price unchanged. No blocks were sold Thursday, and the price was unchanged. No new public comment period on or which it is authorized to conduct blocks were sold Friday; the price jumped to a new record high on an unfilled bid for around July 15, for the public to evidence reviews, analyze the 1 car at $2.6500. The barrel price fell Monday on an uncovered offer at $2.3200, rose results, consider its recommen- Tuesday on a sale at $2.3250, increased Wednesday on a sale at $2.3300, dropped submit comments on the report. Thursday on a sale at $2.2800, then rose Friday on a sale at $2.2850. The public is also invited to pres- dations, and draft its scientific ent oral comments to the agencies report,” the Academy said. Butter Comment: The price declined Monday on a sale at $1.8475, fell Tuesday on a sale at $1.8225, dropped Wednesday on a sale at $1.8000, increased Thursday on Tuesday, Aug. 11, 2020. The Nutrition Coalition also on an unfilled bid at $1.8075, and jumped Friday on a sale at $1.8500. The International Dairy Foods urged that the due date for the sub- Association (IDFA) reported that mission of the DGAC report be Nonfat Dry Milk Comment: The price rose Monday on a sale at $1.0125, increased Wednesday on a sale at $1.0300, declined Thursday on a sale at $1.0200, then DGAC members “confirmed dairy extended in order to have time to increased Friday on a sale at $1.0325. products should maintain a central, address several “serious problems, important role in federal nutri- including lack of time to finish Dry Whey Comment: The price declined Monday on a sale at 30.50 cents, increased Tuesday on a sale at 31.50 cents, fell Wednesday on a sale at 30.50 cents, rose tion recommendations for people the scientific reviews and reviews Thursday on a sale at 31.75 cents, and increased Friday on a sale at 32.75 cents. beginning at a very early age. In that were deleted or added by the addition to maintaining three serv- DGAC without public notice. WHEY MARKETS - JUNE 15 - JUNE 19, 2020 RELEASE DATE - JUNE 18, 2020 MADE IN THE U.S.A. Animal Feed Whey—Central: Milk Replacer: .2900 (NC) – .3100 (NC) ® Buttermilk Powder: The Global Leader in Food Cutting Technology Central & East: .9200 (-3) – 1.0325 (NC) West: .8500 (NC) – 1.0000 (+2) Mostly: .9000 (NC) – .9500 (NC) Casein: Rennet: 3.8950 (+½) – 4.0175 (+½) Acid: 3.8000 (NC) – 3.9000 (NC) Dry Whey—Central (Edible): Amplify Your Nonhygroscopic: .2925 (-½) – .3800 (-2) Mostly: .3350 (-½) – .3700 (NC) Dry Whey–West (Edible): Cheese Shredding Nonhygroscopic: .2700 (NC) – .3975 (-¼) Mostly: .3200 (NC) – .3850 (NC) Meet the new 14-station Dry Whey—NorthEast: .3500 (NC) – .3975 (-1¾) MicroAdjustable® (SH-14) Head. Lactose—Central and West: Edible: .3050 (NC) – .5700 (+1) Mostly: .3800 (+½) – .5500 (+2) The new U.S.D.A., Dairy Division accepted MicroAdjustable Nonfat Dry Milk —Central & East: SH-14 Shred Head features 14 cutting stations, in place of the Low/Medium Heat: 0.9500 (-3) – 1.0500 (NC) Mostly: 1.0050 (-½) – 1.0300 (NC) standard 8, for nearly double the throughput. New technology High Heat: 1.0800 (NC) – 1.1500 (NC) offers 5 preset cut sizes to produce full and reduced shreds — Nonfat Dry Milk —Western: no gauge required. Fits on standard self-locking Low/Medium Heat: 0.8800 (NC) – 1.0625 (NC) Mostly: .9800 (NC) – 1.0300 (NC) support rings. Visit www.urschel.com to learn more. High Heat: 1.0800 (NC) – 1.2100 (+1)

Whey Protein Concentrate—Central and West: Edible 34% Protein: .7000 (-5) – 1.1275 (-1) Mostly: .8000 (-3) – 1.0550 (-2) Whole Milk—National: 1.6000 (NC) – 1.7500 (NC) Visit www.cheesereporter.com for dairy, cheese, butter, and whey prices HISTORICAL MILK PRICES - CLASS III Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ‘09 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 ‘10 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83 THE ‘11 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 GLOBAL LEADER ‘12 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66 IN FOOD CUTTING TECHNOLOGY ‘13 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 Set-up a free test cut of your product: ‘14 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 Toll Free: +1.844.URSCHEL (877.2435) # Best Selling provider of commercial cutting ‘15 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 [email protected] | www.urschel.com 1 machinery throughout the world. ‘16 13.72 13.80 13.74 13.63 12.76 13.22 15.24 16.91 16.39 14.82 16.76 17.40 ® MicroAdjustable, Urschel, Urschel logo symbol, and The Global Leader in ‘17 16.77 16.88 15.81 15.22 15.57 16.44 15.45 16.57 16.36 16.69 16.88 15.44 Food Cutting Technology are registered trademarks of Urschel Laboratories, Inc. U.S.A. ‘18 14.00 13.40 14.22 14.47 15.18 15.21 14.10 14.95 16.09 15.53 14.44 13.78 ‘19 13.96 13.89 15.04 15.96 16.38 16.27 17.55 17.60 18.31 18.72 20.45 19.37 ‘20 17.05 17.00 16.25 13.07 12.14 For more information, visit www.urschel.com

2011SH14CheeseShredding_WorldUSA_qtrpgCheeseRptr.indd 1 5/4/20 2:35 PM